HALISTER1: USD/IDR Forwards May Eye 50-DMA If CPI Misses Estimate: Analysis

USD/IDR Forwards May Eye 50-DMA If CPI Misses Estimate: Analysis

(Bloomberg) -- Lower-than-forecast Sept. CPI for Indonesia could spur rally in USD/IDR 1-mo. NDF as it may provide more backing for further BI rate cuts, Bloomberg strategist Andrew Robinson writes.
  • Consumer prices probably rebounded in Sept. from more than 6-year low of 2.79% in Aug., Bloomberg survey shows; median est. is 3.05%; ests. range from 2.60% to 3.30%; data due today, no time specified
  • BI likely to lower benchmark rate 25 bps by end-4Q, another survey shows
  • 1-mo. NDF could rise to 50-DMA, now at 13,181; NDF hasn’t traded above this moving average since Sept. 21
    • Slow stochastics giving bullish signal, %K line at 32, above %D line & rising
  • USD/IDR 1-mo. NDF down 0.2% at 13,049
    • 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.
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Source: BFW (Bloomberg First Word)

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