USDIDR Price News: Rupiah grinds lower past $15,650 on indecisive Q3 Indonesia GDP
- USDIDR clings to mild gains while defending the week-start gap to the north.
- Indonesia’s Q3 GDP rose past previous readings but missed market forecasts on YoY.
- Covid woes from China, mixed concerns over the Fed also underpin the upside moves.
- US inflation data will be crucial for near-term trade directions.
USDIDR remains sidelined, after a gap-up opening, amid mixed numbers of Indonesia's Gross Domestic Product (GDP). That said, the risk-off mood also favors the Indonesian Rupiah (IDR) sellers around $15,680 by the press time of early Monday morning in Europe.
Indonesia's annual economic growth accelerated in the third quarter to 5.72%, the fastest in more than a year but below market expectation, official data showed on Monday, reported Reuters. The news also mentioned that the second-quarter growth rate was 5.44% on a yearly basis. Economists in a poll had expected gross domestic product in the July-September quarter to be 5.89% bigger than the same period last year.
Finance Minister Sri Mulyani Indrawati has said the government would work to maintain Indonesia's position as a relative "bright spot", but warned that domestic economic activities could be affected by a potential global recession, per Reuters.
Elsewhere, China’s rejection of the hopes of dumping zero-covid policy joined an uptick in the virus numbers from the dragon nation to offer a negative start to the week. Even so, hopes of an increase in private investments in the world’s second-largest economy joined mixed concerns surrounding the US Federal Reserve’s (Fed) next move to keep the buyers hopeful.
Amid these plays, the US dollar struggles for clear directions and the stock futures are down while the Treasury yields are sluggish, grinding lower of late.
Looking forward, US Consumer Price Index (CPI) for October will be crucial amid talks of Fed’s pivot. Should the inflation data eases, the US dollar may have some room to pare the latest gains.
Technical analysis
Unless breaking a two-month-old ascending trend line, around $15,580 by the press time, the USDIDR buyers remain hopeful of reaching the $16,000 threshold.