- USD/INR seesaws near one-week lows ahead of the key inflation data.
- Asian traders ignore China data amid Japan/US holidays.
Not only the absence of Japanese traders but a lack of major data/events also push the USD/INR pair traders to shrug-off Chinese data while declining to 70.8350 ahead of the European session on Monday.
Markets in the United States (US), Japan and Canada are all closed on Monday, giving less room for any news. However, Asian traders seem to cheer last week’s trade-positive headlines while also ignoring higher than expected slump in China’s imports and exports data.
The US and Chinese diplomats agreed over the first stage of the trade deal on Thursday. The same will stop increase in the US tariffs on the Chinese goods while also pushing the dragon nation for further Agricultural imports and taking steps to safeguard the intellectual property rights of the US companies.
During early Monday, China’s September month imports slump more than expected on both the Chinese Yuan (CNY) and the US Dollar (USD) terms. As a result, investors showed less reaction to upbeat Trade Surplus.
Moving on, India’s Wholesale Price Index (WPI) Inflation data for September will be the key to watch for the pair traders. The inflation gauge is expected to come in at 0.90% against 1.08% prior.
In addition to the downbeat expectations from the WPI numbers, the Reserve Bank of India’s (RBI) dovish overview and Moody’s recent downgrade of India’s growth forecast might also weigh on the Indian Rupee (INR) during the days to come.
Technical Analysis
Only if the pair closes below 70.36/35 support-area, including lows marked since August 08, prices can revisit the sub-70.00 region, else a pullback towards 71.60 can’t be denied.
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