Indonesia Prepares Lockdown Measures For Java And Bali

Spot USD/IDR has climbed higher still as the local Covid-19 situation continues to provide a source of worry. The pair last trades +31 figs at IDR14,531. Further gains past Apr 23 high of IDR14,550 would clear the way to IDR14,633-14,635, which capped gains on Apr 13 - 15. Bears look for a dip through Jun 28 low of IDR14,415, towards the 50-DMA at IDR14,371.

• USD/IDR 1-month NDF last +8 figs at IDR14,614. Topside focus falls on Jun 29 high of IDR14,666, while bears see Jun 18 low of IDR14,438 as their initial target.
• Indonesian officials are finalising strict mobility curbs for Java and Bali amid a surge in new Covid-19 infections. The restrictions are expected to be announced today and could take effect Friday through Jul 20. Pres Widodo has resisted calls for a hard nationwide lockdown, fearing its economic consequences.
• Indonesia's Markit M'fing PMI eased to 53.5 from 55.3, noting that despite the current wave of Covid-19 " both production and sales growth remained at strong levels and it would be important to see the pandemic situation come under control soon so as not to further affect the performance of manufacturing firms". On the inflation front, "input price inflation accelerated at a much faster pace compared to output charges and this suggests that firms could be under pressure as a result, and is an important area worth watching".
• Badan Pusat Statistik Indonesia is set to release the latest inflation data later today. Analysts expect headline consumer-price inflation to slow to +1.45% Y/Y from +1.68%.