Indonesia Passes Grim Covid Milestone, Q2 GDP Eyed Today

Spot USD/IDR reopened slightly higher this morning and has held a tight range since, with locals awaiting domestic GDP data. The rate last trades +18 figs at IDR14,330. Bulls would be pleased to see the rate to snap this week's losing streak and return above the 50-DMA at IDR14,400, with the 100-DMA at IDR14,421 providing the next layer of resistance. Bears look for a dip through the 200-DMA at IDR14,309, which limited losses yesterday. Below there opens Jun 11 low of IDR14,185.

• USD/IDR 1-month NDF last -6 figs at IDR14,370. Initial downside focus falls on the 200-DMA/yesterday's low at IDR14,344/14,323. Conversely, bulls look to a jump above Jul 28 high of IDR14,588.
• Indonesia is set to release Q2 GDP within less than two hours. The economy is expected to have grown 6.72% Y/Y, according to Bloomberg consensus forecast, after a 0.74% contraction in Q1. Should reality confirm this expectation, Indonesian GDP would have expanded at the fastest pace in more than a decade.
• Indonesia's death toll from Covid-19 has eclipsed 100,000 on Wednesday, as the country reported 1,747 new fatalities. More than a third of all deaths occurred in July, as rapid spread of new infections put a strain on the healthcare system and caused oxygen shortages.
• Worth flagging that FinMin Indrawati urged commercial lenders to help stimulate economic recovery by playing their part and boosting loan disbursement. Indrawati warned that "it will be very difficult for the economy to recover until the financial sector resumes lending growth".