Rupiah Faces Light Headwinds, CPI Report Eyed Friday

Spot USD/IDR deals +12 figs at IDR14,862 as we type, extending this week's advance. Jun 22 cycle high of IDR14,873 provides the next layer of resistance and a break here would provide evidence that bullish momentum is still there. Further out, focus falls on Sep 25, 2020/Sep 11, 2020 highs of IDR14,919/14,950.

• USD/IDR 1-month NDF last -8 figs at IDR14,868. Topside focus is on Jun 22 high of IDR14,896, followed by the IDR15,000 figure. Bears keep an eye on Jun 27 low of IDR14,788.
• MYR/IDR sits -3 figs at IDR3,373 after finally closing above its 100-DMA on Wednesday. That moving average had been under pressure in recent days and now focus moves to Jun 22 high of IDR3,380 & the 200-DMA at IDR3,392.
• SGD/IDR trades at IDR10,679, 9 figs lower on the day. If the rate falls through Jun 23 low of IDR10,652, bears would eye a deeper retreat towards Jun 13 low of IDR10,454. Bulls look for a resumption of gains past Jun 28 high of IDR10,721.
• Indonesia/U.S. 10-Year yield spread has marginally narrowed this morning, but remains near weekly highs printed earlier in the day.
• New regulations are in store for Indonesia's commodity space. The government announced that it will seek to manage exports to prevent tin oversupply and wants to set progressive rates for coal royalty.
• During his visit to Kyiv, Indonesian President Widodo called for every effort to reopen Ukrainian exports and resume efforts to end the war. He offered to relay President Zelensky's message to Vladimir Putin as he now heads to Moscow for talks with Russia's leader.
• The local data docket is virtually empty today, with monthly CPI coming up tomorrow.