Halister News

(Bloomberg) -- A lower-than-forecast reading for Indonesia’s Sept. CPI could spur a rally in USD/IDR 1-mo. NDF, as this could provide more backing for further BI rate cuts, Bloomberg strategist Andrew Robinson writes.

• Consumer prices probably rebounded in Sept. from a more than six-year low of 2.79% seen in Aug., a Bloomberg survey shows; median est. is 3.04%, vs range of ests. from 2.60% to 3.30%; data due on Oct. 3
• BI is likely to lower its benchmark rate by 25 bps by end-4Q, another survey shows
• 1-mo. NDF could rise to 50-DMA which is now at 13,181; NDF hasn’t traded above this moving average since Sept. 21
  • Slow stochastics are giving a bullish signal, with %K line crossing above %D line to 29
• USD/IDR 1-mo. NDF up 0.1% at 13,045 today; it touched 12,914 on Sept. 27, lowest since April 2015
• 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