Rupiah Weakens After Palm Oil Dip

Spot USD/IDR keeps refreshing cyclical highs and last trades +27 figs at IDR15,385. Bulls look for gains past the 61.8% retracement of the 2020 sell-off/Apr 23, 2020 high at IDR15,574/15,598. Bearish focus falls on Sep 30 low of IDR15,150.

• USD/IDR 1-month NDF last +33 figs at IDR15,414. Topside focus is on the 50% retracement of the 2020 - 2021 slide at IDR15,562, while bears look to force a pullback under Oct 5 low of IDR15,158.
• Offshore investors were net buyers of $1.87mn in Indonesian equities Tuesday. The Jakarta Comp fell 0.8% on turnover which topped the 15-DMA. The index has found poise this morning, recouping some of yesterday's losses.
• Palm oil futures hold the bulk of yesterday's losses, with the contract for December delivery last seen +MYR17/MT versus previous settlement. The aggregate Bloomberg Commodity Index is slightly softer.
• Indonesia's 5-Year CDS premium widened to 162.3bn, still operating within touching distance from Sep 29/Jul 15 cycle highs of 163.7/164.4bp.
• Indonesian FinMin Indrawati said emerging economies face a "hurricane" of risks from rising costs of energy and food and any resilience will be short-lived. She spoke from Washington D.C. where she takes part in annual IMF and WB meetings, as well as a summit of G20 finance ministers and central bank chiefs.