- USD/INR bulls take a breather around 20-month top, sidelined of late.
- India’s WPI inflation jumped to 12-year high, active covid cases fall to seven-month low.
- Pre-Fed anxiety grips markets, Omicron, geopolitics offer intermediate moves.
- FOMC is the key event as hawkish hopes battle virus woes.
USD/INR treads water around the highest levels since June 2020, defending the 76.00 threshold heading into Wednesday’s European session.
While hawkish hopes from the US Federal Reserve (Fed) seem to have helped the USD/INR bulls to refresh multi-month high the previous day, recently mixed catalysts and anxiety ahead of the key Federal Open Market Committee (FOMC) tests the upside momentum.
A drop in the US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, to 11-week low contrast with a record high Producer Price Index (PPI) for November to test Fed hawks.
Additionally challenging the USD/INR run-up is the recent easing of the covid infections in Indian and firmer inflation data suggesting the Reserve Bank of India’s (RBI) rate hike. On Tuesday, India’s WPI inflation for November jumped past 12.54% prior and 11.90% expected to 14.23% actual release. It’s worth noting that India’s active covid infections drop to the lowest since May per the latest official data published on Wednesday.
Even so, virus woes and the US-China tussles, as well as the Washington-Iran tension, keep the USD/INR buyers.
Moving on, Fed’s action will be the key to watch for near-term USD/INR direction as the US central bank is up for faster tapering and signals to rate hike. However, Omicron stands ready to offer surprises.
Overbought RSI seems to challenge USD/INR bulls targeting an ascending resistance line from March, around 76.50. However, pullback moves remain less worrisome until breaking 75.65 support, surrounding tops marked in April and October.
Additional important levels
|Today last price||76.0785|
|Today Daily Change||0.0031|
|Today Daily Change %||0.00%|
|Today daily open||76.0754|
|Previous Daily High||76.265|
|Previous Daily Low||75.7756|
|Previous Weekly High||75.9065|
|Previous Weekly Low||75.1665|
|Previous Monthly High||75.1908|
|Previous Monthly Low||73.8515|
|Daily Fibonacci 38.2%||76.078|
|Daily Fibonacci 61.8%||75.9625|
|Daily Pivot Point S1||75.8123|
|Daily Pivot Point S2||75.5492|
|Daily Pivot Point S3||75.3229|
|Daily Pivot Point R1||76.3018|
|Daily Pivot Point R2||76.5281|
|Daily Pivot Point R3||76.7912|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.