Indonesia’s central bank said on Thursday it will consider whether there’s room to ease monetary policy, the first indication it’s given this year of possible interest-rate cuts to unwind a series of hikes in 2018.
Bank Indonesia left its benchmark interest rate unchanged at 6%, as expected, with Governor Perry Warjiyo telling reporters in Jakarta that the policy stance is “cautious neutral” and data dependent.
After 175 basis points of hikes last year, policy makers in Southeast Asia’s biggest economy are reluctant to ease too quickly to avoid destabilizing the currency, which is already under renewed pressure from rising U.S-China trade tensions and a global slowdown. Central banks in the Philippines, Malaysia, India and New Zealand have already cut interest rates this year.
So what's in store for the USDIDR next, lets go to the charts to find out?
Monthly Chart (Curve Timeframe) – monthly supply is at 15100 and monthly demand is at 13800.
Weekly Chart (Trend Timeframe) – the trend is sideways, with upward bias.
Daily Chart (Entry) – the chart suggests to go long on a pull back to the daily demand at 14220 with a target at the daily supply at 14965.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.