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All Eyes On Bank Indonesia

IDR

Spot USD/IDR has climbed above its 50-DMA this morning and last deals +16 figs at IDR14,903 amid weakness in the broader Asia EM space. A break above Aug 4 high of IDR14,939 would bring Jul 22 high of IDR15,038 into play. Bears see the 100-DMA (IDR14,681) as their initial target.

  • USD/IDR 1-month NDF last -16 figs at IDR14,921. Bears set their sights on Aug 17 low/100-DMA at IDR14,743/14,724. Bulls look to a move through Aug 5 high of IDR14,990.
  • Palm oil futures hold firm this morning. The contract for November delivery has added MYR66/MT to last trade at MYR4,226/MT, with the 50-DMA capping gains over the past week or so.
  • Majority (24/31) of economists in a Bloomberg survey expect Bank Indonesia to keep the 7-Day Reverse Repo Rate unchanged today, while the rest have forecast a 25bp hike. In light of recent rhetoric from the Bank's top brass, we expect policymakers to stand pat this time (see our full preview here).

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