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.

Anil Panchal FXStreet

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.

Additional important levels

Overview
Today last price	79.5705
Today Daily Change	0.0888
Today Daily Change %	0.11%
Today daily open	79.4817

Trends
Daily SMA20	78.6841
Daily SMA50	77.9849
Daily SMA100	77.0565
Daily SMA200	75.9526

Levels
Previous Daily High	79.7916
Previous Daily Low	79.431
Previous Weekly High	79.557
Previous Weekly Low	78.8583
Previous Monthly High	79.091
Previous Monthly Low	77.3791
Daily Fibonacci 38.2%	79.5687
Daily Fibonacci 61.8%	79.6539
Daily Pivot Point S1	79.3446
Daily Pivot Point S2	79.2075
Daily Pivot Point S3	78.984
Daily Pivot Point R1	79.7052
Daily Pivot Point R2	79.9287
Daily Pivot Point R3	80.0658

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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