USD/INR Price News: Indian rupee eases below 74.00 as risks dwindle in Asia

USD/INR bounces off two-week low to refresh intraday high.
Trading sentiment sours amid virus woes, Aussie-China trade tussle.
US election results, vaccine hopes and expectations of stimulus battle bears.
Indian Trade Deficit, Balance of Payment details will be eyed for fresh impulse.

Anil Panchal FXStreet

USD/INR refreshes intraday high to 73.65, up 0.02% on a day, while bouncing off the lowest since November 02 during early Tuesday. The quote recently recovered as the US dollar pulled back from the April 2018 low, flashed the previous day, amid a mild risk-off mood in Asia.

Joe Biden’s victory in Electoral College and upbeat comments from the American Congress, relating to the coronavirus (COVID-19) stimulus, join the vaccine-related welcome news to keep the markets hopeful. However, worsening virus conditions in Tokyo, the UK, Europe and the US weigh the mood.

Also challenging the sentiment could be mixed figures of Industrial Production and Retail Sales data, for November, from China, as well as Canberra-Beijing tussle. Although Chinese Industrial Production rose for the eighth month, also matched the forecast of 7.0%, the Retail Sales eased from the market consensus of 5.2% to 5.0% YoY during November. Further, tensions between Australia and China are getting fierce as the former is signaling to approach the World Trade Organization (WTO) for the dragon nation’s alleged trade-punitive measures over the Aussie Barley and coal.

Read: Asian stocks retreat as virus woes, Aussie-China tension battle covid vaccine hopes

At home, India’s WPI Inflation eases below 1.62% to 1.55% in October while the Consumer Price Index (CPI), also known as the retail inflation data, eased from 7.61% in October to 6.93% YoY in November, as per the figures from the Ministry of Statistics and Programme Implementation, India.

Looking forward, the quote is likely to fade the upside momentum if the Trade Deficit matches the $9.96B forecast while Balance of Payment crosses $19.8B prior during the second quarter (Q2). Also expected to challenge the pair bulls can be the US dollar weakness. Though, broad risk-off in Asia may tame restrict USD/INR downside.

Technical analysis

Unless breaking an area including 21-day SMA and a falling trend line from November 13, around 73.85/90, USD/INR bulls are less likely to return.

Additional important levels

Overview
Today last price	73.663
Today Daily Change	0.0217
Today Daily Change %	0.03%
Today daily open	73.6413

Trends
Daily SMA20	73.8946
Daily SMA50	73.8903
Daily SMA100	73.9772
Daily SMA200	74.7547

Levels
Previous Daily High	73.763
Previous Daily Low	73.4885
Previous Weekly High	74.0346
Previous Weekly Low	73.5408
Previous Monthly High	74.985
Previous Monthly Low	73.6492
Daily Fibonacci 38.2%	73.5934
Daily Fibonacci 61.8%	73.6581
Daily Pivot Point S1	73.4989
Daily Pivot Point S2	73.3564
Daily Pivot Point S3	73.2244
Daily Pivot Point R1	73.7734
Daily Pivot Point R2	73.9054
Daily Pivot Point R3	74.0479

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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