USD/IDR SEEKS STABILITY ABOVE 15,000 AS INDONESIAN INFLATION SOFTENS, US PMI EYED

USD/IDR is looking for stability above 15,000 amid a decline in Indonesian inflation.

US equities were heavily bought on Friday as the street is anticipating that the Fed might go with only one interest rate hike.

US Manufacturing PMI is expected to continue its contracting spell due to higher interest rates from the Fed.

The USD/IDR pair is aiming for stability above the crucial resistance of 15,000 in the Asian session. The asset has picked some strength as Statistics Indonesia has reported that the Consumer Price Index (CPI) softened in June.

Monthly inflation showed a mild pace of 0.14% while the street was estimating a higher pace of 0.24% but remained higher than the pace of 0.09% being recorded last month. Annual inflation decelerated to 3.52% vs. the consensus of 3.64% and the former release of 4%. Core inflation that excludes oil and food prices landed at 2.58% but remained lower than the expectations of 2.64% and the prior release of 2.66%. This might allow the Bank Indonesia (BI) to keep the interest rates steady further.

Meanwhile, S&P500 futures are flat portraying a quite market mood. US equities were heavily bought last week as the street is anticipating that the Federal Reserve (Fed) might go with only one interest rate hike. The US Dollar Index (DXY) has faced barricades around 103.00 and is expected to remain volatile ahead of the United States Manufacturing PMI data to be released by the Institute of Supply Management (ISM) department.

As per the consensus, Manufacturing PMI is seen expanding to 47.2 vs. the former release of 46.9. Investors should note that US Manufacturing PMI has been contracting straight for the past seven months and is expected to continue its contracting spell due to higher interest rates from the Fed. Apart from that, New Orders Index is expected to jump to 44.0 vs. the former release of 42.6