Rupiah’s recovery mode intact even as Indonesia’s Q1 GDP contracts 2.41%
Fundamental Forex Analysis

Indonesian rupiah trims losses despite awful Indonesian Trade data

According to the latest trade data published by the Indonesian Statistics Bureau, the country posted a bigger-than-expected trade deficit in April.

Indonesia reported a trade surplus of $-0.35 billion vs. $0.74 billion expected and $-0.20 billion previous. The imports and exports came in at -18.58% and -7.0% respectively vs. -12.73% and -2.70% expectations and -0.75% and -0.20% respective priors.

The median forecast from economists was for a $0.20 billion trade deficit last month, the Reuters poll showed last week. 

FX implications

USD/IDR trims gains despite downbeat Indonesian Trade Balance data, moving away from daily tops of 14,910. At the press time, the cross trades 0.27% higher at 14,880.

About Indonesia’s Trade Balance

The Trade Balance released by Statistics Indonesia is a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. If a steady demand in exchange for Indonesian exports is seen, the Rupiah will receive a positive (or bullish) effect, while a low reading is seen as negative (or bearish).

Source Link