That said, Indonesia's Inflation rose by 5.51% YoY versus 5.39% previous whereas the MoM figures grew by 0.66% compared to 0.09% prior release. It’s worth noting that Core Inflation grew by 3.36% YoY against 3.3% previous readings. Furthermore, Indonesia S&P Global PMI for December also improved to 50.9 versus 50.3.
Earlier in the day, Indonesia President Joko Widodo mentioned, per Reuters, that he expects 2023 growth above 5.0%. It should be observed that the latest Indonesia Inflation figures are above the Bank Indonesia target range between 2.0% and 4.0%, which in turn should have propelled the IDR. However, economic fears surrounding China, as well as holidays in major markets seemed to have allowed the USD/IDR bears to take a breather.
Doubts over China’s economic recovery, due to the Covid outbreak, join the downbeat comments from the International Monetary Fund’s Managing Director Kristalina Georgieva concerning Beijing, seem to underpin the US Dollar rebound. Even so, the latest headlines from Reuters seem to challenge the IDR bears by pushing back pessimism surrounding China.