USD/INR Price News: Indian rupee wobbles around 73.50 amid mixed clues
|- USD/INR struggles to keep the previous day’s recovery moves despite recently bouncing off 73.42.
- India and China jointly agreed to ease border tensions.
- New Delhi marks the record daily jump in COVID-19 cases.
- Indian Manufacturing-Industrial Output, US CPI will be in the spotlight.
USD/INR trims the early-Asia losses while taking rounds to 73.50 ahead of Friday’s European session. The quote gained the previous day as the US dollar regained its strength while the Indo-Sino border tussles strengthened the upside momentum.
Will the show of power end?
Despite agreeing to disengage troops near the Line of Actual Control (LAC), the market doubt that the Asian neighbors will go for peace. The reason could be the difference between the allies of both nations. While China was recently spotted hanging out with the Arab leaders, India has been cheered by the US, the UK and some other nations that stand against Beijing.
Read: Indian and Chinese ministers agreed that troops should quickly disengage and ease tensions
Another reason to expect the sooner end of peace is the ongoing trade war. India recently banned multiple Chinese apps while the other end is alleging Narendra Modi-led government’s military push to spoil the global peace.
Other than the low hopes of peace with the dragon nation, the surge in the coronavirus (COVID-19) also plays negative for the Indian rupee (INR). Having flashed the record-breaking jump in daily cases, above 95,000, the previous day, India’s new cases surged to 96,551 on Thursday. With this, the total count of the pandemic reaches to 4.56 million in the country.
On the contrary, risk reset in Asia-Pacific markets, questions the pair’s upside momentum. While portraying the market mood, S&P 500 Futures print 0.63% gains but India’s BSE Sensex drops 0.10% daily.
Traders may now await India’s July month Industrial Output and Manufacturing Output, expected -11.2% and -23.5% respectively, for fresh impulse. Also on the radar will be the US Consumer Price Index (CPI) data that is likely to recover to 1.2% from 1.0% in August. As a result, the anticipated US dollar strength and risk to market sentiment can keep fueling the USD/INR pair.
Technical analysis
An area between 73.95 and 74.00, including 21-day SMA, August 24 low and current month high, becomes the key short-term resistance for the pair. Meanwhile, 73.00 and the monthly bottom close to 72.75 can challenge the short-term sellers.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.