• USD/IDR picks up bids to pare intraday losses on downbeat catalysts from Indonesia.
• Indonesia Exports eased in May, President announces readiness to reshuffle cabinet.
• DXY pullback, optimism in China challenge buyers ahead of the Fed.

USD/IDR consolidates intraday losses around $14,745, down 0.15% intraday, as downbeat Indonesia trade numbers join political uncertainty in the Asian session to test the pair sellers. That said, the quote remains on the back foot for the second consecutive day during early Wednesday morning in Europe.

Indonesia's Exports eased from 38.69% to 27.00%, versus 47.76% prior, as per the latest trade numbers from Statistics Indonesia. Details suggest that Imports rose 30.74% versus 32.80% forecasts and 21.97% previous readouts while the Trade Balance eased to $+2.9 billion compared to $3.83 billion market consensus and $7.56 billion prior.

Elsewhere, Indonesian President Joko Widodo is up for a cabinet reshuffle on Wednesday afternoon, per Reuters, “Bima Arya Sugiarto, a member of the National Mandate Party (PAN) and the mayor of Bogor, confirmed the reshuffle would take place later on Wednesday after a meeting with the president,” the news adds.

On the contrary, a pullback in the US Treasury yields from the multi-year high and China’s upbeat Retail Sales, as well as Industrial Production, challenge the USD/IDR buyers. It’s worth noting that that CME’s FedWatch Tool, there is a 99% probability for a 75 bp rate increase during today’s Fed meeting, which in turn suggests the Indonesia rupiah (IDR) pair’s further upside.

Other than the Fed-linked concerns, US Retail Sales for May expected at 0.2% MoM versus 0.9% prior, could entertain USD/IDR traders.

Technical analysis

USD/IDR pullback from the yearly resistance line, around $14,810 by the press time, directs the quote towards the weekly support near $14,600.