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  • USD/IDR shrugs-off USD weakness, Jakarta economic re-opening.
  • Indonesia records highest one-day rise in COVID-19 cases amid easing policy.
  • All eyes on US CPI and Fed’s economic projections.

USD/IDR trades with sizeable gains on Wednesday, clinging to the 14K barrier, as the bulls remain undeterred by the pre-Fed decision caution and broad-based US dollar weakness.

Markets are readjusting their US dollar positions ahead of the Fed’s interest decision and the economic projections, especially after the excellent US NFP data pointed towards a V-shaped economic recovery.

On the IDR-side of the equation, the Indonesian rupiah fails to take advantage of the optimism around the re-opening up of the capital, Jakarta, as the country’s highest single-day increase in the coronavirus cases dampens the investors’ sentiment.

Attention now turns towards the US Fed event for the next direction in the US dollar. Meanwhile, the spot will take cues from the broad market sentiment, in the meantime.

USD/IDR technical levels to watch