USD/IDR Price News: Rupiah jumps back above $14,500 despite downbeat Indonesia Retail Sales
- USD/IDR snaps four-day uptrend while reversing from a fortnight top.
- Indonesia Retail Sales eased to 8.5% in April, versus 9.3% prior.
- US dollar’s retreat ahead of the key inflation data seems to unpin the pullback moves.
USD/IDR pares weekly gains around $14,570 even as Indonesia Retail Sales eased in April, per the latest release on Friday. The reason for the Indonesia Rupiah (IDR) pair’s latest weakness could be linked to the broad US dollar pullback ahead of the US Consumer Price Index (CPI) for May.
As per the latest survey from the Bank Indonesia, the nation’s Retail Sales eased to 8.5% in April, versus 9.3% previous readouts.
That said, the US Dollar Index (DXY) pares the biggest daily gains in a week amid anxiety prior to the crucial inflation data.
It’s worth noting, however, that the fresh covid fears in China, due to the return of activity restrictions in Shanghai and Beijing, challenge market sentiment in Asia. “China's commercial hub of Shanghai faces an unexpected round of mass COVID-19 testing for most residents this weekend - just 10 days after a city-wide lockdown was lifted - unsettling residents and raising concerns about the impact on business,” said Reuters.
On a broader front, escalating fears of faster/heavier rate hikes and the negative economic repercussions of the same seem to weigh on the market’s performance of late. The growing concerns over hot inflation and the Russia-Ukraine tussles are some of the extra catalysts that test the USD/IDR bears.
Moving on, the US CPI, expected to remain static at around 8.5% YoY, will be important to watch as the White House has already signaled a higher number, which in turn could recall the USD/IDR bulls.
Technical analysis
Despite the latest pullback, USD/IDR holds onto the early week’s rebound from the 100-DMA, around $14,420 by the press time, which in turn keeps the pair buyers hopeful.