Rupiah Awaits Local Consumer Confidence Data

USD/IDR has added 40 pips and trades at IDR14,780, establishing itself above its 100-DMA after a brief flirtation with that level yesterday and on Friday.

• Monday's spell of light USD/IDR sales was likely inspired by Friday's comments from FinMin Indrawati, who pledged commitment to ensure the credibility and independence of monetary policy, adding that debt financing by Bank Indonesia is a one-off step. Indrawati's comments seemed to be an attempt to address questions surrounding a controversial legislative proposal, yet to be discussed in parliament, which entailed worries about BI independence.
• Indonesian Coodinating Board of Investment Head Bahlil Lahadalia will hold a press briefing at 13:30 local time on the job creation omnibus bill initiated by President Joko Widodo. The landmark bill will revamp wide swaths of existing legislation with the aim to cut red tape and attract investment. The draft bill has sparked controversy among workers, who held protests against relaxing some labour law provisions, although lawmakers agreed to rip up some of the most controversial changes.
• Bulls eye Sep 3 high of IDR14,820 for initial resistance and a breach of the figure would clear the way to Aug 18 high of IDR14,875. Bears need a fall through the 100-DMA at IDR14,705 and the 50-DMA at IDR14,583 before attempting a move at Aug 31 low of IDR14,505.
• Indonesia's consumer confidence index should hit the wires at some point today.