According to the latest trade data published by the Indonesian Statistics Bureau, the country posted a bigger-than-expected trade surplus in July amid a slump in imports.
Indonesia reported a trade surplus of $3.26 billion vs. $0.68 billion expected and $1.27 billion previous. The imports and exports came in at -32.55% and -9.9% respectively vs. -22.48% and -16.65% expectations and -6.36% and +2.28% respective priors.
FX implications
USD/IDR eased from three-month highs of 14,877.50 on the Trade Balance data release. The cross still gains 0.88% on a daily basis.
About Indonesia’s Trade Balance
The Trade Balance released by Statistics Indonesia is a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. If a steady demand in exchange for Indonesian exports is seen, the Rupiah will receive a positive (or bullish) effect, while a low reading is seen as negative (or bearish).
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