Halister News

(Bloomberg) -- USD/IDR may breach 200-DMA resistance at 13,672 if Indonesia’s inflation data on June 1 is in line with expectations, Bloomberg strategist Andrew Robinson writes.

• May consumer prices probably rose 3.30% y/y, slowing from 3.60% gain in April, median est. in Bloomberg survey shows
  • That would be the lowest reading on record from data going back to 2010
• CPI data due tomorrow, no time specified; four of the five releases so far this year have come just after 11am local time
• Low inflation could provide central bank opportunity to ease policy
  • BI sees room for easing if situation allows, Juda Agung, executive director of monetary policy, said in an interview on Monday
• On May 19, BI kept benchmark rates unchanged while cutting its 2016 growth target to 5%-5.4% from a prev. forecast of 5.2%-5.6%; it also said it saw inflation at the mid-point of its 2016 target of 3%-5%
• BI’s next policy meeting is on June 16
• USD/IDR down 0.2% at 13,618 today
  • Sustained breach of 200-DMA would bring Feb. 3 high of 13,828 into focus
• NOTE: Andrew Robinson is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice