Widodo To Deliver Annual Fiscal Speech

Spot USD/IDR trades +24 figs at IDR14,767 and topside technical focus falls on Aug 4 high of IDR14,939 at typing. Bears see the 100-DMA at IDR14,659 as their initial target.

• USD/IDR 1-month NDF last +20 figs at IDR14,780. Bulls look to a move through Aug 5 high of IDR14,990, while bears eye Aug 12 low of IDR14,14,654 for initial support.
• Palm oil futures have clawed back losses registered in after-hours trade. The contract for October delivery trades +MYR123.00/MT at MYR4,248/MT at typing.
• Indonesia's 5-year CDS premium is hovering just above two-month lows printed last week. It now sits at around 98bp.
• Bisnis Indonesia reported that the gov't is considering raising the prices of Pertalite and diesel this month to reduce the fiscal burden of its generous subsidy schemes. Energy and Mineral Resources Minister Tasrif told the media outlet that the government could tighten rules on the supply, distribution and retail prices of the subsidised fuel.
• President Widodo is preparing delivers his annual budget speech today. The focus will be on his fiscal consolidation plan after the government took the advantage of higher commodity prices and rolled out sizeable subsidies to mitigate the impact
• Indonesia's Q2 BoP current account balance will be published on Friday.