Virus Matters In Focus, Jokowi Set To Speak

Spot USD/IDR last changes hands at IDR14,490, little changed on the day. Bearish focus remains on IDR14,463, which limited losses on Jul 6. Bulls look for a move through Jul 9 high of IDR14,550, which would open up Jul 2 high of IDR14,568.

• USD/IDR 1-month NDF last seen -16 figs at IDR14,555. Bears see Jul 5 low of IDR14,493 as their initial target, while bulls look for a break above Jun 29 high of IDR14,666.
• Indonesia declared another record-breaking increase in new Covid-19 infections, adding 40,427 new cases on Monday. The number of deaths rose by 891, amid shortages of oxygen and other critical supplies.
• Investment Min Luhut, who's in charge of Indonesia's emergency Covid-19 measures, said that the gov't expects situation in Java and Bali to improve within days, once additional supplies of oxygen arrive.
• BI Gov Warjiyo noted that the central bank may gradually reduce liquidity in the financial system and then hike interest rates in late 2022, but this scenario remain highly uncertain. Elsewhere, BI slashed its GDP growth forecast for 2021 to +3.8% Y/Y from +4.1-5.1% Y/Y.
• Pres Widodo will deliver an address at a virtual event hosted by Investor Daily, which has Investment Min Luhut & other ministers listed as participants.
• The latest monthly Indonesian trade report will be released on Thursday.