Central Banks Take Centre Stage

Spot USD/IDR has added 10 pips and last deals at IDR14,353, as hawkish Fed musings have generated a mild tailwind for the pair. A break above Feb 7 high of IDR14,408 would open up Jan 31 high of IDR14,420. Conversely, losses past the 50-DMA at IDR14,335 would draw attention to Jan 24 low of IDR14,307.

• USD/IDR 1-month NDF last -3 figs at IDR14,362. Bears eye Jan 13 low of IDR14,292 for initial support, while bulls look to a move through Feb 7/Jan 6 highs of IDR14,461/14,470.
• This comes after Bank Indonesia kept its main policy rate unchanged Thursday, in line with consensus forecast. Gov Warjiyo noted that the decision was "consistent with the need to maintain exchange rate and inflation stability, and supporting economic growth amid a build-up of external pressures." He reiterated that the policy rate will remain low until there are signs of inflation picking up.
• Moody's affirmed Indonesia at Baa2, the second-lowest investment grade score, citing "continued economic resiliency" and "expectations that monetary and macroeconomic policy effectiveness will be maintained."
• Bank Indonesia's consumer confidence index improved to 119.6 in January from 118.3 prior. The results of Danareksa Research's survey are expected to hit the wires by the end of this week (albeit there is no fixed time of those releases).
• Next week, focus will turn to Indonesia's trade data (Tuesday) & BoP current account balance (Friday).