Even as Indonesia Retail Sales decline, the USD/IDR remains under pressure, paring weekly gains.
Retail sales fell to 14.7 percent YoY in June, down from 15.6 percent in May.
Recently, Indonesia has seen a spike in covid infections and virus-related mortality.
The dismal Indonesia Retail Sales numbers haven’t swayed USD/IDR, which is trading near $14,550 after renewing the weekly high the day before. Despite this, the bulls remain optimistic as fears about the coronavirus (COVID-19) grow in the Asia-Pacific area.
Indonesian retail sales fell below 15.6 percent YoY in May, to 14.7 percent, causing alarm among Indonesian rupiah (IDR) vendors. It’s worth noting that the world’s fourth-largest country has recently been in risk.
Nikkei noted, “While portraying the nation’s covid issues, “On Thursday, the archipelago reported 38,391 new cases, a new high. Its daily death toll of 1,040 on Wednesday was also a record, and it was the first time it surpassed 1,000.”
The recent US-China squabbles, in which the US is considering new sanctions on Chinese companies over the Xinjiang issue, may also be contributing to the pair’s strength.
By the time of publication, the risk-off mentality had put a buy under the US dollar index (DXY).
T-bond rates are expected to bounce off the 50-day moving average in the US Dollar Index.
Looking ahead, vivid headlines and Sino-American news will be the most important things to keep an eye on for new direction.
Although bulls will find it difficult to break through $14,700, USD/IDR bears will be less likely to join unless they see a definite negative breach of a monthly support line, which is currently around $14,490 at press time./n
