USD/IDR rejects 13500 mark despite rate cut by BI

Pair is well supported below 13500 levels and currently trading around 13445 levels.

• It made intraday high at 13505 and low at 13430 levels.
   
• In line with the expectations, BI cut its benchmark interest rate by 25bp to 7.0%.
   
• In addition, overnight deposit facility rate and lending facility rate were also cut by 0.25 percent to 5.00 percent and 7.50 percent, respectively.
   
• Meanwhile, Bank Indonesia also cut the reserve-requirement ratio for rupiah deposits at commercial banks by 100 basis points to 6.5 percent.
   
• USD/IDR intraday bias remains bearish for the moment.
   
• Pair likely to consolidate below 13605 levels.
   
• A daily close above 13600 levels will take the parity towards key resistance at 13800 and 14065 thereafter.
   
• Alternatively, recent downfall will take the parity around 13335 and 13201 levels.

We prefer to take short position in USD/IDR around 13500, stop loss 13605 and target 13201.