Onshore Markets Closed, Covid Angst Remains

USD/IDR 1-month NDF last seen -25 figs at IDR14,646, with onshore markets closed for a public holiday. Further losses in 1-month NDF past Jul 16 low of IDR14,487 would please bears, while bulls look for a jump above Apr 13 high of IDR14,736.

• Indonesia implemented a suite of restrictions in preparation for Eid al-Adha, a major Islamic holiday which takes place today. The authorities want to avoid mistakes from the Eid al-Fitr festival held in May, when an increase in mobility likely contributed to the emergence of Indonesia's largest and deadliest wave of Covid-19.
• Moody's warned that the surge in new Covid-19 infections observed in Indonesia is credit negative, while GDP growth and the labour market could fall prey to "greater degree of longer-term scarring."
• The latest poll conducted by Lembaga Survei Indonesia showed that approval for Pres Widodo registered a nearly 10pp drop since December, even as the leader managed to maintain high levels of support through the bulk of the pandemic.
• Bank Indonesia will deliver their monetary policy decision on Thursday (our comprehensive preview is forthcoming), but virtually all analysts expect policymakers to sit tight.