- USD/IDR remains sidelined amid the recent risk reset.
- Indonesia bans air, sea travel until June, extended lockdown from April 24 to May 22 previously.
- US House passes a $484 billion stimulus for small businesses, hospitals, testing while the Fed also facilitated the minor units.
USD/IDR remains modestly changed to 15,500 as Indonesian markets open for trading on Friday. The coronavirus (COVID-19) outbreak in Indonesia, as well as broad US dollar strength, weighed on the pair the previous day while US updates seem to recently affect the market’s risk-tone sentiment during the Asian session.
As per Reuters, “Indonesia will temporarily ban domestic and international air and sea travel, with some exceptions, starting Friday to prevent a further spread of the coronavirus, Transport Ministry officials said on Thursday.”
“The ban on air travel will be in place until June 1, said Novie Riyanto Rahardjo, Transport Ministry’s director-general of aviation. The ban on travel by sea will run until June 8, sea transportation director general Agus Purnomo said,” also mentioned the news.
It’s worth mentioning that the Asian nation earlier stretched the lockdown from April 24 to May 22 on Wednesday. The reason could be cited by a wider outbreak of the pandemic. Bloomberg relies on the John Hopkins University data to convey 647 death and 7,775 total positive cases in Indonesia in its latest piece.
On the other hand, virus data from the US suggest a further flattening of the curve, which in turn helps US President Donald Trump to claim that 40% of counties have witnessed declines in the new cases.
Further, the US House finally passed a $484 billion aid package for small businesses whereas the Federal Reserve also said to be working to facilitate lending to small businesses.
Amid all these plays, the US 10-year Treasury yields dropped two basis points (bps) to 0.59% whereas Indonesian stock benchmark, IDX Composite, declines 0.50% to 4,568 during the initial few minutes of trading.
Given the lack of major data/event up for publishing during the Asian session, markets may keep eyes on the pandemic news ahead of the busy economic calendar in the US session. Among the US data, March month Durable Goods Orders and April month Michigan Consumer Sentiment Index, expected -11.9% and 68 versus +1.2% and 71 respective priors, will be the key to watch.
Technical analysis
Sellers are waiting for the entries below the weekly low surrounding 15,400, to target a 50-day SMA level of 15,180, while buyers may confront 21-day SMA, at 15,920 now, on the upside beyond 15,750.
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