USD/INR Price News: Indian rupee unfazed by RBI’s rate cut


  • USD/INR accelerates the recovery moves from 75.47.
  • RBI announces 40 basis points (bps) of cuts in the key Repo and Reverse repo rates.
  • Downbeat comments from China’s National People's Congress (NPC) weigh on trading sentiment.

USD/INR stays bid around 75.72, up 0.11% on a day, after the Reserve Bank of India (RBI) announced rate cuts on early Friday.

Read: RBI unexpectedly cuts key rate by 40bps to 4.0% in May

While the initial reaction to the RBI’s rate cuts seems limited, the pair seems to gain influence from the expected escalation in the US-China tussle due to the latest developments in China.

The dragon nation is inching closer to tightening its grip over Hong Kong. While the Asian major haven’t directly targeted the US yet, the US Senate Majority Leader McConnell earlier said that further China crackdown on Hong Kong will intensify the interest in re-examining the US-China relationship.

That said, the 13th NPC also dropped its GDP targeting for 2020 and triggered wide fears based on the coronavirus (COVID-19) woes.

Not everything from China is negative, the NPC updates also suggest that the Asian major will implement trade deal with the US, which in turn offers a ray of hope at the end of the tunnel.

Portraying the risk-tone sentiment, the US 10-year Treasury yields drop 2.6 basis points to 0.651% while Japan’s NIKKEI lose 0.80% to 20,385 by the press time.

Looking forward, a light economic calendar can keep the pair traders pushed towards qualitative catalysts, mainly concerning the the US-China tussle risk, for fresh impulse.

Technical analysis

Buyers are looking for a clear break of the monthly resistance line, at 75.75 now, to aim for 76.00 and May 12 high surrounding 76.20. Alternatively, sellers await entries below 75.45 to target 75.00.

Additional important levels

Overview
Today last price 75.72
Today Daily Change 0.0825
Today Daily Change % 0.11%
Today daily open 75.6375
 
Trends
Daily SMA20 75.7002
Daily SMA50 75.7447
Daily SMA100 73.786
Daily SMA200 72.543
 
Levels
Previous Daily High 75.83
Previous Daily Low 75.4713
Previous Weekly High 76.1945
Previous Weekly Low 75.0489
Previous Monthly High 76.975
Previous Monthly Low 75.14
Daily Fibonacci 38.2% 75.693
Daily Fibonacci 61.8% 75.6083
Daily Pivot Point S1 75.4625
Daily Pivot Point S2 75.2876
Daily Pivot Point S3 75.1038
Daily Pivot Point R1 75.8212
Daily Pivot Point R2 76.005
Daily Pivot Point R3 76.1799

 

 

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