Onshore Markets Reopen After Holidays, Covid-19 Worry Lingers

Spot USD/IDR jumped after the reopen, returned above its 100-DMA and last changes hands +55 figs at IDR14,253. Early price action was a function of the pent-up impetus from the back end of last week, when Indonesia observed public holidays.

• The gov't expressed concern about social mobility over the holiday period and its ramifications for the national fight against Covid-19. Transportation Min Sumadi said that more than 1.5mn people may have gone on traditional "mudik" trips, despite a mudik ban imposed between May 6-17.
• Elsewhere, Indonesia suspended the use of a certain batch of AstraZeneca Covid-19 batch and ordered an investigation into potential side effects.
• Trade balance, due Thursday, is the main point of note on the local data docket this week.
• From a technical point of view, gains past the 200-DMA at IDR14,401 would give bulls some fresh impetus. On the flip side, bears set their sights on May 10 cycle low of IDR14,145.
• USD/IDR 1-month NDF last seen at IDR14,330, marginally higher on the day. Above May 13 high of IDR14,403 would open the 200-DMA at IDR14,450. Meanwhile, a fall through May 13 low of IDR14,220 would bring May 7 cycle low of IDR14,133 into play.