Dollar Rate rupiah to Trend September 2, 2010
USD/rupiah likely to trade in tight band ahead of tomorrow''''s central bank meeting. While August CPI was within forecast at 6.44%, core inflation continued to spike upward at 4.53%. 'This Friday, BI will perhaps remain on hold but in 4Q we will see normalization and they will need to hike rates sooner rather than later,' says Barclays Capital. Indonesia had trade deficit in July of $130 million, first in 2 years on 14.5% on-month growth in imports of machinery and mechanical equipment. 'The narrowing trade surplus (a deficit this time!) could tone down anticipation of further IDR strengthening,' says Gundy Cahyadi at OCBC. Dow Jones technical analysis shows immediate support at 8,935 (Aug 19 low), below at 8,922 (Aug 5 low). Initial resistance at 9,045 (Aug 31 high), above at 9,100 (July peak).
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