Extra gains to the 14,930 level appear on the cards for USD/IDR in the near term, comments Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

“After USD/IDR dropped to a low of 14,560 and rebounded, we highlighted last Monday (01 May, spot at 14,695) that ‘the weakness in USD/IDR appears to have stabilized’ and we expected it to ‘consolidate in a range between 14,550 and 14,740’. However, USD/IDR did not exactly consolidate as it rebounded from 14,650 to 14,765.”

“USD/IDR continue to rise today and the improving upward momentum suggests it could advance to 14,930. A break of this level is not ruled out but it is premature to expect USD/IDR to breach the next major resistance at 14,980. This week, any pullback is unlikely to challenge 14,650 (minor support is at 14,710).”