USD/IDR: Rupiah’s recovery mode intact even as Indonesia’s Q1 GDP contracts 2.41%

• USD/IDR defends gains despite disappointing Indonesia’s Q1 GDP
• Coronavirus outbreak impact continues to weigh on the economy.

According to the latest release from Statistics Indonesia, the Indonesian economy contracted 2.41% QoQ in Q1 2020 versus -1.27% forecast and -1.74% prior.

On an annualized basis, Indonesia’s GDP rate arrived at 2.97% compared to 4.04% expected and 4.97% seen in the fourth quarter (Q4) 2019.

About Indonesia’s GDP

The Gross Domestic Product released by the Statistics Indonesia is a measure of the total value of all goods and services produced by Indonesia. The GDP is considered as a broad measure of economic activity and health. Generally speaking, a high reading is seen as positive (or bullish) for the Rupiah, while a negative trend is seen as negative (or bearish).

FX implications

USD/IDR trims gains near 15,065 despite the below-forecast Indonesian GDP data, as broad-based US dollar weakness rescues the rupiah bulls.