Rupiah Falters, Virus Surges

Spot USD/IDR trades on a slightly firmer footing as onshore rupiah reopened. The rate last changes hands +43 figs at IDR14,525, with bulls eyeing Jul 9 high of IDR14,550 for initial resistance. Should they force a break here, the path to Jul 2 high of IDR14,568 would be open. Bears need losses past Jul 13 low of IDR14,462, before targeting Jun 28 low of IDR14,415.

• USD/IDR 1-month NDF last seen +19 figs at IDR14,600. Bulls look for a breach of Jul 8 high of IDR14,664, a key near-term resistance. Conversely, a dip through Jul 5 low of IDR14,493 would please bears.
• Indonesia reported another record-breaking surge in new virus cases on Thursday, adding 56,757 infections.
• Indonesian Finance Ministry said that the country's fiscal revenue will benefit from a G20 global tax deal, which would allow Jakarta to tax income of large multinational companies.
• Maritime and Investment Affairs Min Luhut, who is in charge of coordinating emergency virus curbs, appear alongside Health Min Sadikin today. Elsewhere, S&P will hold a webinar on the Covid-19 situation in Indonesia.
• Bank Indonesia will deliver their latest monetary policy decision next Thursday. Despite Indonesia's dire Covid-19 situation, all 7 economists surveyed by Bloomberg so far expect no change to the main policy rate. Mind that BI Gov Warjiyo all but ruled out further rate cuts earlier this week, while noting that the Bank will focus on ensuring better policy transmission.