Rupiah Firms Along Asia EM Peers, Indonesia To Extend CPO Export Levy Waiver

Spot USD/IDR operates -15 figs at IDR14,833 as broader greenback weakness provides reprieve to USD/Asia crosses. Downside technical focus falls on the 100-DMA, which intersects at IDR14,690. Conversely, bulls look for a breach of the 50-DMA (IDR14,898) before setting their sights on Aug 4 high of IDR14,939.

• USD/IDR 1-month NDF last seen -21 figs at IDR14,833. Bears see Aug 12 low of IDR14,654 as their initial target. Bulls look for a rally through Aug 22/5 highs of IDR14,953/14,990.
• Foreign investors bought a net $55.3mn of Indonesian equities on Wednesday, extending a series of daily inflows started on Aug 4. The Jakarta Comp index has faltered this morning and last sits ~0.4% lower on the day.
• Palm oil futures have traded with a slight bearish bias, holding a tight range this morning. The contract for November delivery last operates MYR33/MT lower on the day. Note that Indonesia decided to extend its export levy waiver by two months in a renewed bid to boost shipments.
• The gov't said it will submit the findings from its assessment on subsidised fuel price hikes to President Widodo this week. It will then announce the decision on price increase, which will be closely watched due to the ramifications for inflation dynamics.