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Rupiah Slips After Bank Indonesia Reports Deterioration In Consumer Confidence

IDR

Spot USD/IDR operates at IDR14,273, 20 figs higher on the day, after playing catch up with overnight greenback strength at the reopen. Bulls look to a break above the nearby 200-DMA, which intersects at IDR14,284. Should this moving average give way, topside focus would move to IDR14,345, which capped gains on Aug 31. Bears need a plunge through Jun 11/Sep 7 lows of IDR14,185/14,182 to regain poise.

  • USD/IDR 1-month NDF last -10 figs at IDR14,319. Bears would be pleased by a slide through Sep 7/Jun 11 lows of IDR14,201/14,198, while bulls look for a breach of the 200-DMA at IDR14,361.
  • Indonesian Financial Services Authority yesterday lowered their 2021 loan growth forecast to +4.0%-4.5% Y/Y and said they would be more optimistic if the vaccination drive accelerates and there are no new coronavirus variants which could exacerbate the outbreak.
  • The official consumer confidence index published by Bank Indonesia tumbled to 77.3 in August, its lowest point in 16 years. The update came a day after the Danareksa Research Institute said that their gauge of consumer sentiment rose to 71.2 from 62.1.

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