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Rupiah Dumped After FOMC Minutes, Local Trade Data Eyed

IDR

Spot USD/IDR has added 80 figs so far and last trades at IDR14,370, with the upswing likely driven by Wednesday's gains in the greenback. A break above the 50% recovery of the Apr 13 - May 10 slide/200-DMA at IDR14,390/14,395 provides the initial layer of resistance, while bears look for retreat under the 100-DMA at IDR14,252.

  • USD/IDR 1-month NDF little changed at IDR14,456, with bulls keeping an eye on the nearby 50-DMA at IDR14,500. Conversely, a dip through May 18 low of IDR14,295 would please bears.
  • Econ Min Hartarto revealed that Pres Widodo has submitted a letter to lawmakers to begin debate on revisions to tax law. Proposed changes could include a carbon tax & possible tax amnesty.
  • Badan Pusat Statistik Indonesia will release trade data for the month of April later today. Trade surplus is expected to print at $1.202bn after March's reading of $1.560bn, according to BBG consensus forecast. Looking further afield, quarterly BoP current account balance comes out tomorrow.

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