- USD/INR stands on the slippery ground during the five-day downtrend.
- UK’s consignment of ventilators reach India, helps from US, EU, Russia and Middle East are in the pipeline.
- India’s daily COVID-19 positivity rate jumps to 20%.
- Fed, covid to direct near-term moves, US stimulus shouldn’t be ignored as well.
USD/INR takes offers around a one-week low while flashing 74.56, down 0.33% intraday, during the initial Indian session on Tuesday. In doing so, the Indian rupee (INR) pair drops for the fifth consecutive day as global leaders unite to help the nation overcome the pandemic.
Indian markets buck the sluggish trend in Asia-Pacific as the first international help, in the form of the UK’s ventilators and oxygen concentrators, reach New Delhi. While Britain’s kind gesture is the first, the US, Europe, Russia and China, not to forget Saudi Arabia and Dubai, are all united to help the Asian nation overcome the health crisis in history.
Even so, the nation registers a fifth consecutive day with infections above 300K level, recently around 344,000. The Indian Health Ministry also mentioned that the daily positivity jumps to 20% while 10 states, unfortunately, contribute 77% of the total virus-led deaths.
On the other hand, Western leaders prepare to open international boundaries for vaccinated people while faster jabbing increases the odds of a soon and sustained economic run-up.
Taming the bulls are doubts over US President Joe Biden’s infrastructure spending, due to the latest US Census signaling power shift, as well as indecision ahead of the Federal Reserve’s rate decision on Wednesday.
Amid these plays, S&P 500 Futures rise 0.20% whereas India’s BSE Sensex also add half a percent by the press time.
Moving on, USD/INR traders may cheer further incoming of global helps to combat the pandemic. However, the pre-Fed fears and US stimulus headlines may offer intermediate moves and hence should be observed for clear direction.
Technical analysis
While the 75.00 threshold guards short-term USD/INR upside, sellers should remain cautious until the quote stays above 74.45/40 support zone comprising 21-day SMA and an ascending support line from April 08.
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.
Recommended content
Editors’ Picks
AUD/USD rises to two-day high ahead of Aussie CPI
The Aussie Dollar recorded back-to-back positive days against the US Dollar and climbed more than 0.59% on Tuesday, as the US April S&P PMIs were weaker than expected. That spurred speculations that the Federal Reserve could put rate cuts back on the table. The AUD/USD trades at 0.6488 as Wednesday’s Asian session begins.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure
Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.
Australia CPI Preview: Inflation set to remain above target as hopes of early interest-rate cuts fade
An Australian inflation update takes the spotlight this week ahead of critical United States macroeconomic data. The Australian Bureau of Statistics will release two different inflation gauges on Wednesday.