Published on 19/11/2019 10:42:29 AM | Source: HDFC Securities Ltd

Asian Currencies Drop on US China Trade Pessimism - HDFC Securities

Posted in Currency Report| #HDFC Securities #Currency Tips

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Asian Currencies Drop on US China Trade Pessimism HDFC Securities

* Rupee drops in line with Asia’s EM currencies as a lack of progress in U.S.-China trade talks hurt risk appetite. Apart from the US China trade uncertainty, unrest in Hong Kong also weighed on Asian currencies.

* Global funds sold a net $79.5 million in debt holdings on Nov. 15, according to Securities and Exchange Board of India data. Sold a net $162.7 million in Indian equities on Nov. 15, according to exchange data.

* Technically, Spot USDINR remains bullish with resistance at 72.25 and support at 71.50.

* Chinese Yuan dipped after the PBOC lowered borrowing cost on short term loans for the first time since 2015 and injected $26 billion into the financial system.

* Meanwhile, the dollar index extended a slide after Federal Reserve Chairman Jerome Powell met with President Donald Trump and Treasury Secretary Steven Mnuchin on Monday to discuss the economy.

* The pound rallied after opinion polls showed UK Prime Minister Boris Johnson’s Conservative Party enjoyed a wide lead ahead of next month’s general election.

* US economic indicators due for release include housing starts Tuesday and initial jobless claims on Thursday.

* China announces its loan prime rates, a benchmark for borrowing cost on Wednesday



* USDINR November futures took support at 8 days moving average and headed higher.

* Momentum oscillators turned bullish on daily chart.

* We see continuation of positive trend with higher side resistance at 72.30 and 72.70. It will find support around 71.50.





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