USD/INR Price News: Indian rupee bears attack 79.50 on oil’s rebounds ahead of US inflation
|- USD/INR fails to extend the previous day’s pullback from record top.
- Oil prices cheer US dollar pullback from 20-year, cautious optimism.
- US CPI for June appears the key for near-term market directions.
USD/INR picks up bids to 79.54, reversing the pullback from an all-time high, as buyers cheer firmer oil prices during Wednesday’s Asian session. The Indian rupee (INR) pair’s weakness could also be linked to the nation’s official consumer inflation data, published late Tuesday.
“India's annual consumer inflation remained painfully above the 7% mark and beyond the central bank's tolerance band for the sixth month in a row, official data showed on Tuesday, raising prospects of more rate hikes by the central bank next month,” per Reuters.
On the other hand, the market sentiment improves ahead of the key US Consumer Price Index (CPI) for June, expected to rise to 8.8% YoY from 8.6%, which in turn underpins the rebound in oil prices.
That said, the prices of WTI crude oil recover from the lowest levels since late February while snapping a two-day downtrend, up 0.32% intraday near $93.75.
It’s worth noting that the latest recovery in risk profile could be linked to the upbeat White House (WH) statement and softer US data.
As per Reuters, “The US economic data, including the June jobs report, are not consistent with a recession in the first or second quarters,” the White House said in a memo released on Tuesday. The news contributed to the market’s profit booking moves ahead of the key data/events. Further, the US NFIB Business Optimism Index for June slumped to the lowest since early 2013 while flashing 89.5 figures versus 93.1 prior.
While portraying the mood, S&P 500 Futures and the US 10-year Treasury yields both snap a two-day downtrend. Further, stocks in the Asia-Pacific region also appear to fade the previous bearish bias.
Moving on, USD/INR traders may witness inaction as markets brace for the US inflation numbers.
Technical analysis
USD/INR seller may consider the Gravestone Doji candlestick at the all-time to take the risk of entry should the quote drops below a two-week-old support line, around 79.28 by the press time. Meanwhile, an upside break of 79.80 defies the bearish candlestick and can propel the prices towards the 80.00 psychological magnet.
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