Spot USD/IDR Trims Losses, 1-Month NDF Advances

Spot USD/IDR changes hands at IDR15,478, down 10 figs on the day, after paring some initial losses. Should the rate tumble past Oct 5/Sep 30 lows of IDR15,161/15,150, bears could hope for a deeper sell-off. Bulls look to force their way through the 61.8% retracement of the 2020 sell-off/Apr 23, 2020 high of IDR15,574/15,598.

• USD/IDR 1-month NDF last +20 figs at IDR15,498. Bulls look for a break above the 50% recovery of the 2020 - 2021 slump located at IDR15,562. Bears keep an eye on Oct 5 low of IDR15,158.
• Foreign investors bought a net $155.31mn in Indonesian stocks Monday, the largest daily inflow since Oct 6. The Jakarta Comp printed a fresh cyclical low before reversing losses; recovery momentum has petered out this morning and the index now operates near neutral levels.
• Palm oil futures have extended yesterday's gains and the contract for January delivery last trades +MYR61/MT, with the tropical oil supported by persistent ringgit weakness.
• Bank Indonesia will announce its monetary policy decision this Thursday. As things stand, 19/30 economists surveyed by Bloomberg expect the Board of Governors to raise the 7-Day Reverse Repo Rate by 50bp. The rest have pencilled in a 25bp rate rise.