Indonesia's Manufacturing Sector Continues To Expand

USD/IDR 1-month NDF have shed 7 figs thus far and last change hands at IDR14,514 as onshore markets remain closed through the entirety of this week.

• From a technical point of view, bears look for a sell-off past Apr 26 low of IDR14,407 before targeting Apr 19 low of IDR14,341. Bulls look for a rebound above the IDR14,585-87 area, which hosts three intraday highs from late Apr/early May.
• The downtick came on the back of the release of Indonesia's S&P Global Manufacturing PMI survey, which showed faster expansion in the sector.
• Headline index rose to 51.9 in April from 51.3 recorded in March, which marked the eighth consecutive month of expansion.
• However, S&P Global warned that "business confidence fell sharply over April and it will be worth monitoring the impact of higher inflationary pressures".
• On the bright side, "the increase in purchasing activity and importantly, the solid expansion of workforce numbers, continued to reflect some confidence from firms for the near-term".