Still Outperforming

USD/IDR spot is down a further 0.35% so far today, last in the 14915/20 region. Earlier lows were close to 14900. A fresh break below this level will have the market targeting a move towards 14837, which is the YTD low for 2023. Recent highs (towards the end of March and earlier in April), come in around the 15000 level. The IDR remains a comfortable outperformer against the rest of Asia FX over the past week (+1.15%).

• Cross asset signals remain positive, with 5yr CDS back to 92bps. while global equities generally remain on the front foot. Palm oil also looks to be breaking above its simple 200-day MA. The Citi ToT proxy has bounced for Indonesia, albeit from depressed levels.
• Yesterday's March CPI data, which was below expectations (core sub 3% y/y, headline below 5%), suggests the BI will remain on hold. Onshore yields continue to track lower, last around 6.72%, near lows from late Feb.
• Portfolio inflows remain constructive, with equity inflows now positive for 8 straight sessions. The JCI is struggling to hold above 6800 though.
• As noted yesterday, bond inflows were positive through the end of March
• The local data calendar is quiet until next week.