USD/IDR slips from 11-week top to sub-14,000 area despite floods in Jakarta
- USD/IDR justifies Tuesday’s bearish Doji.
- Coronavirus fears fail to disappoint sellers amid US dollar weakness.
- Risk-tone remains heavy as the Chinese pandemic spreads in Europe.
- A stimulus at home, BI intervention keep the bears hopeful.
USD/IDR declines to 13,944 during the Asian session on Wednesday. In doing so, the pair pays a little heed to the flooding in the Indonesian capital Jakarta. The reason could be traced from the US dollar weakness and the governments, as well as Bank Indonesia’s (BI), recent efforts.
On Tuesday, Fox News cited the extension of Sunday’s heavy rains into the Indonesian capital Jakarta that has paralyzed transportation networks.
Alternatively, Indonesian Finance Minister Sri Mulyani Indrawati also rolled out a 10.3 trillion rupiah ($748.55 million) stimulus package the same day. In doing so, the government prepares to ease the pair of China’s coronavirus outbreak on the export-oriented economy. Prior to that, a BI official conveyed that the central bank intervenes to curb capital outflows amid coronavirus spread.
China’s coronavirus is presently spreading faster in the Europe as Spain, Croatia and Switzerland are the latest ones to join the league of infected nations. The latest figures from Italy and South Korea also keep the fears of a widespread outbreak.
Even so, the US 10-year treasury yields and S&P 500 Futures stays mildly positive while waiting for fresh clues to extend the recent day’s risk-off.
During last-week, Bank Indonesia announced the first rate cut of 2020 and maintained its bearish bias.
Considering the absence of major data/events, investors will keep following coronavirus headlines for fresh impulse.
Technical Analysis
While the recent upward trajectory favors the buyers, fresh long can wait unless witnessing a sustained break above 200-day SMA, near 14,065 now,