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USD/IDR Sticks To Wednesday's Range, Indonesia Launches Covid-19 Vaccinations

IDR

Decent gains in USD/IDR seen Monday allowed the pair to close its opening gap from Jan 4. Topside momentum lost steam after USD/IDR staged a brief foray above its 50-DMA on Tuesday and subsequently corrected the upswing, gapping lower at Wednesday's re-open. It last sits +33 pips at IDR14,093.

  • Indonesia's Covid-19 vaccination campaign kicked of yesterday, as Pres Joko Widodo became the first Indonesian to receive the jab. Separately, Widodo met with Chinese Foreign Min Wang, who is in Indonesia for a two-day visit.
  • Implied USD/IDR 1-month volatility has continued to ease off from the YtD high printed on Monday.
  • With spot USD/IDR respecting yesterday's range thus far, gains past the 50-DMA at IDR14,145 & 38.2% recovery of the Oct 14 - Jan 4 slide/Jan 12 high at IDR14,204/14,205 would expose Dec 23, 2020 high of IDR14,232. On the downside, a sell-off through yesterday's low of IDR14,060 would clear the way to Jan 4 low of IDR13,865, a key near-term support.
  • Indonesian trade data for the month of Dec will be published this Friday. Just to flag in advance, Bank Indonesia holds a monetary policy meeting next Thursday.

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