Regional Trend Keeps Rupiah In Check Despite Firmer Palm Oil

Spot USD/IDR has added 38 figs thus far and last changes hands at IDR14,930, with the rupiah coming under pressure in line with regional trend. Bulls look for further gains past Jul 22 high of IDR15,038, while bears keep an eye on the 50-DMA at IDR14,838.

• USD/IDR 1-month NDF last -11 figs at IDR14,954. The key downside target is provided by the 50-DMA at IDR14,862. Conversely, bulls look for a rebound towards Jul 21 high of IDR15,133.
• MYR/IDR trades at IDR3,346, barely changed on the day. Bears eye Aug 1 low of IDR3,331 for initial support, with bulls setting their sights on Jul 22 high of IDR3,379.
• SGD/IDR trades at IDR10,798, down ~25 figs on the day. Downside technical focus falls on Aug 3 low of IDR10,743, while bulls look to a move through Jul 28 high of IDR10,869.
• Palm oil futures have been firmer at the start to the week. The contract for October delivery has climbed MYR160/MT so far to last trade at MYR4,038/MT.
• Indonesia's 5-year CDS premium has added 18bp this morning and last sits at 116bp.
• Indonesia allowed airlines to pass on more fuel cost to travellers, which may amplify existing inflationary pressures.
• This week will likely see the release of Indonesia's monthly consumer confidence gauges.
• Finance Ministry's Head of Fiscal Policy Agency Kacaribu will hold a media briefing on the economy and global risks today.