Rupiah Firms In Spite Of Lockdown Extension

Spot USD/IDR gapped lower this morning, while the rupiah outperforms its peers from Asia EM FX space, even as officials decided to extend the multi-tiered lockdown restrictions. The rate last operates -48 figs at IDR14,375, with bears now looking for a further dip through the 200-DMA, which intersects at IDR14,314. Bulls look to retake the 100-DMA at IDR14,422, before targeting Jul 26 high of IDR14,510.

• USD/IDR 1-month NDF unch. at IDR14,402, with downside focus falling on the 200-DMA at IDR14,348. Conversely, bulls keep an eye on Jul 28 high of IDR14,588.
• Indonesia extended its emergency curbs on mobility through Aug 9, with the strictest rules set to be left in place in major Javanese cities, including Jakarta. Min Luhut Panjaitan who coordinates emergency Covid-19 measures said that "confirmed cases, positivity rate and deaths are still high in areas such as Bali, Malang, Yogyakarta and Solo," but also noted that restrictions would be relaxed gradually by the end of the month.
• Consumer-price growth registered at +1.52% Y/Y in July, marginally topping expectations as inflation accelerated from +1.33% recorded in July. Core CPI eased slightly to +1.40% Y/Y from +1.49%.
• Focus in Indonesia moves to Q2 GDP report, due Thursday. The economy is expected to have grown 6.66% Y/Y, as per Bloomberg consensus forecast.