USD/INR posts modest gains above 83.00, US GDP data eyed

USD/INR sticks to modest gains below the mid-83.00s ahead of US data.
US Durable Goods Orders rose by 0.2% MoM vs. -5.6% prior.
Reserve Bank of India (RBI) is likely to keep the interest rate unchanged at its October meeting.
Investors will closely watch the US consumer inflation due on Friday.

Lallalit Srijandorn FXStreet

USD/INR posts modest gains during the Asian session on Thursday. The uptick in the pair is supported by the rally of US Dollar (USD) broadly and higher Treasury yield. The pair currently trades around 83.22, losing 0.07% on the day.

Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, climbs to 106.65, the highest since November. The higher for longer rates narrative and risk-averse sentiment are the main drivers of the pair. However, growth risks from the possibility of an imminent government shutdown in the US might cap the upside of the Greenback against its rivals.

On Wednesday, the US Census Bureau reported that the US Durable Goods Orders rebounded in August, rising 0.2% m/m from a 5.6% drop in the previous reading, against expectations of a 0.5% m/m fall. Additionally, Durable Goods Orders ex Transportation rose by 0.4% m/m, a better than expected of 0.1% rise. Core capital goods orders rose 0.9% from the previous reading of a 0.4% drop, above the market consensus of 0%.

On the other hand, the Reserve Bank of India (RBI) is likely to maintain a status quo on interest rates for the fourth consecutive time at its upcoming monetary policy meeting scheduled for October 4-6. The benchmark repo rate was lifted to 6.5% in February and remained unchanged since then due to elevated retail inflation and global factors, including high crude oil prices.

Looking ahead, market players will monitor the US weekly Jobless Claims report, the third revision of Gross Domestic Product (GDP) for the second quarter, and Pending Home Sales data due later on Thursday. On Friday, the Indian Federal Fiscal Deficit for August, Current Account, and Reserve Bank of India (RBI) Monetary Credit and Information Review will be released. The closely watched event will be the US Core Personal Consumption Expenditure (PCE) Price Index on Friday. These figures could give a clear direction of the USD/INR pair.

USD/INR

Overview
Today last price	83.2047
Today Daily Change	-0.0818
Today Daily Change %	-0.10
Today daily open	83.2865

Trends
Daily SMA20	83.0727
Daily SMA50	82.8331
Daily SMA100	82.5734
Daily SMA200	82.3697

Levels
Previous Daily High	83.4189
Previous Daily Low	83.1547
Previous Weekly High	83.8456
Previous Weekly Low	82.5125
Previous Monthly High	83.5505
Previous Monthly Low	82.224
Daily Fibonacci 38.2%	83.2556
Daily Fibonacci 61.8%	83.3179
Daily Pivot Point S1	83.1545
Daily Pivot Point S2	83.0225
Daily Pivot Point S3	82.8904
Daily Pivot Point R1	83.4187
Daily Pivot Point R2	83.5508
Daily Pivot Point R3	83.6828

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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