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  • USD/IDR extends the latest pullback from 14,350 amid upbeat comments from Bank Indonesia officials.
  • August month Indonesian Inflation numbers will offer fresh clues as the US market is closed.

USD/IDR remains on the back foot around 14,185 as traders await Indonesia Inflation data for fresh impulse during Monday’s Asian session.

Recently, the Bank Indonesia Governor Perry Warjiyo  said that the central bank’s stance is now turned to pro-growth form pro-stability while also anticipating a high gross domestic product (GDP) growth for the third quarter (Q3) of 2019.

Additionally, the Deputy Governor Destry Damayanti  was also spotted saying that Bank Indonesia sees rupiah remaining stable according to the market mechanism.

With this, the pair recently took a U-turn but awaits headline inflation data for August in order to determine near-term trade direction. Forecasts suggest the headline Inflation (MoM) data soften to 0.16% from 0.31% while that on YoY basis might increase to 3.54% versus 3.32% earlier. Further, Core Inflation (YoY) might remain modestly changed to 3.17% against 3.18% previous readouts.

On the other hand, the US-China trade headlines are likely to determine most of the US Dollar (USD) moves amid the US holiday due to the Labor Day.

Technical Analysis

As far as prices remain below 50-day exponential moving average (EMA) level of 14,195, chances of their gradual declines to an ascending trend-line from mid-June, at 14,060, can’t be ruled out. Should there be an uptick beyond 14,200, buyers can sneak in to target 14,350/70 area comprising multiple highs since August 13.