IGI Logo

Positive Glow across Asian Equities and Currencies

There is a distinctly positive glow across Asian equities and currencies on Tuesday. Regional ug currencies were being directed higher by an overnight dollar decline and that has been reinforced with a lower-than-expected USD/CNY fixing. The non deliverable forwards USDINR also quoted at 73.64 from 73.74 yesterday’s 5pm IST.

Spot USDINR is expected to open slightly higher following stronger domestic equities and weaker dollar index. On Monday, the pair closed with loss of 7 paise to 73.22. Technically, it has support at 73.05 and breaching of the same will open for 72.70 odd levels while 73.70 will act as near term resistance.

India's wholesale inflation accelerated to 10.49 per cent in April on account of a surge in the prices of fuel and manufactured products. Fuel and power inflation stood at nearly 21 per cent led by higher petrol and diesel prices.

Asian stocks look poised for a muted open as virus cases in the region pick up and concerns about the economic outlook weighed on their U.S. peers. The dollar wobbled near multi month lows against European currencies on Tuesday as Treasury yields stall due to renewed expectations that U.S. interest rates will remain low for an extended period.

Pound has been lifted recently as investors cheer the gradual lifting of strict coronavirus restrictions on economic activity. Last pound quoted at 1.4173 against dollar, its strongest level since late February.

Yen bids around 109.15, continue its three-day losing streak on Japan’s Q1 GDP shrank an annualized 5.1% from the prior quarter in the three months through March, ending a two quarter streak of double-digit growth, the Cabinet Office reported Tuesday.

USDINR

USDINR May futures closed below 200 days simple moving average.

The pair formed dragonfly doji candle, considered as_ reversal pattern with confirmation above 73.47.

MACD fell below zero line indicating weaker trend.

RSI placed at 37 odd level and heading ‘ bos towards oversold zone suggesting weaker momentum.

USDINR May futures expected to trade with bearish bias and selling below 73.25 push towards 73 level while 73.80 remains near term hurdle.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer