USD/IDR Hitting Fresh Highs Amidst Cross-Asset Headwinds

USD/IDR continues to gravitate higher, the pair last in the 14975/80 region, +0.15% versus Friday closing levels. The 1 month NDF is doing better, down sub 14990, after the pair broke above 15000 late in NY trade on Friday.

• Spot USD/IDR is right on the simple 50-day MA (14974), while beyond round figure resistance at 15000, we also have late March lows near 15050, which may act as upside resistance. BI stated last week at the policy decision it will continue aim towards IDR stability.
• We are at fresh multi month lows for local equities, the JCI off a further 0.80% at this stage, to 6630. Commodity prices remain softer in the palm oil space, although futures have found some support around the MYR3550 region.
• The other headwind for equities is concerns around the economic outlook. Bank lending in April slipped to 8% y/y, down from the early Q4 highs of near 12%.
• Offshore equity flows were positive last week though (+146.1mn) as were bond inflows ($209.2mn). We do have a host of local bonds sales at 4:30pm local time today though.
• The data calendar is empty this week.