Rupiah Trades Sideways In Search For New Catalysts

Spot USD/IDR has traded sideways, holding near neutral levels thus far. The pair last trades little changed at IDR14,065 & participants remain on the lookout for fresh catalysts.

• Should the rate move through support from Jan 15 low of IDR14,020, bears would be able to take aim at Jan 4 low of IDR13,865. Conversely, a rally past the 50-DMA at IDR14,110 would encourage bulls to target the 38.2% retracement of the Oct 14 - Jan 4 slide/Jan 12 high at IDR14,204/14,205.
• The EU is planning to sue Indonesia to the WTO over Jakarta's restrictions on exports of certain raw materials. The EU is expected to bring up the case during the Jan 25 meeting of the WTO's Dispute Settlement Body.
• Indonesian state builder PP Director said that the company plans to issue IDR1.5-2.0tn bonds due in 3-5 years this quarter as part of its IDR4.0tn bond scheme.
• Looking ahead, Bank Indonesia delivers its monetary policy decision on Thursday, with consensus looking for a stand-pat decision.