29 Jan 2014
Flash: USD/IDR buy on dips - ANZ
FXstreet.com (Barcelona) - Irene Cheung, FX Strategist Asia at ANZ, recommends buying the pair on pullbacks.
Key Quotes
"Wremain cautious on the IDR despite recent improvements in the trade balance."
"Our economist expects the current account to remain in a deficit this year. Also, we see persistent underlying inflation pressure but further monetary tightening may not be forthcoming ahead of elections in Q2-Q3. In addition, we see sustained hedging demand for the country’s USD liability."
"USD/IDR has retraced lower in the past two days, helped by positive spill-over from an aggressive 550bps rate hike by the Central Bank of Turkey."
"Taking advantage of this temporary reprieve, we recommend buying 3m USD/IDR NDF at 12,260 (spot reference 12148), targeting 12,600 with stop loss at 11,920."
Key Quotes
"Wremain cautious on the IDR despite recent improvements in the trade balance."
"Our economist expects the current account to remain in a deficit this year. Also, we see persistent underlying inflation pressure but further monetary tightening may not be forthcoming ahead of elections in Q2-Q3. In addition, we see sustained hedging demand for the country’s USD liability."
"USD/IDR has retraced lower in the past two days, helped by positive spill-over from an aggressive 550bps rate hike by the Central Bank of Turkey."
"Taking advantage of this temporary reprieve, we recommend buying 3m USD/IDR NDF at 12,260 (spot reference 12148), targeting 12,600 with stop loss at 11,920."