- Mixed sentiment ahead of central bank meeting questions the traders.
- FOMC and second-tier data could offer intermediate moves ahead of BI decision.
Despite latest ex-USD market momentum, the USD/IDR pair trades modestly flat around 21-day SMA level of 14,325 as investors await fresh news ahead of the European open on Monday.
Recent data from Indonesia has been mixed as improvement in consumer prices confronted sluggish sentiment figures and lowered down retail sales forecast from the central bank.
Thursday’s monetary policy meeting by the Bank Indonesia (BI), the Indonesian central bank, is something USD/IDR traders are all eyeing amid monetary policy easing from rest of the major Asian economies, like India, China, Japan.
While latest survey from the BI showed that retail sales rose 6.7% on the year in April versus a 10.1% increase seen in March, country’s Finance Minister Sri Mulyani Indrawati was recently spotted favoring chances of the central bank’s monetary policy easing.
Other than the BI decision, political plays surrounding the US-China trade tussle and Wednesday’s monetary policy meeting by the US Federal Reserve will also grab investor attention.
Technical Analysis
So far as the quote remains above 100-day simple moving average (SMA) level of 14,196, it can still challenge 14,440 mark comprising 200-day SMA, a break of which can recall 14,600 back to the chart.
Alternatively, pair’s decline under 14,196 may avail month’s low near 14,150 and 14,100 as intermediate halts prior to visiting 14,000 and April month low near 13,970.
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