- USD/IDR defends gains despite disappointing Indonesia’s Q1 GDP
- Coronavirus outbreak impact continues to weigh on the economy.
According to the latest release from Statistics Indonesia, the Indonesian economy contracted 2.41% QoQ in Q1 2020 versus -1.27% forecast and -1.74% prior.
On an annualized basis, Indonesia’s GDP rate arrived at 2.97% compared to 4.04% expected and 4.97% seen in the fourth quarter (Q4) 2019.
About Indonesia’s GDP
The Gross Domestic Product released by the Statistics Indonesia is a measure of the total value of all goods and services produced by Indonesia. The GDP is considered as a broad measure of economic activity and health. Generally speaking, a high reading is seen as positive (or bullish) for the Rupiah, while a negative trend is seen as negative (or bearish).
FX implications
USD/IDR trims gains near 15,065 despite the below-forecast Indonesian GDP data, as broad-based US dollar weakness rescues the rupiah bulls.
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