- USD/INR prints mild losses, keeps Wednesday’s pullback from monthly top.
- Market sentiment dwindles, US Treasury yields refresh multi-day high.
- Evergrande awaited for coupon payment, Fedspeakers eyed over hawkish bias.
USD/INR takes offers around 73.78, down 0.12% intraday during early Friday.
The Indian rupee (INR) pair snapped a two-day uptrend the previous day before bouncing off 73.60. The rebound, however, failed to last amid the cautious optimism ahead of the key events.
Among the key catalysts is the curiosity over Evergrande’s scheduled bond coupon payment. On the same line are the comments from China’s National Development and Reform Commission (NDRC) suggesting issues of rising raw material prices and power to probe the bulls. Furthermore, traders’ wait for the scheduled speeches from the US Federal Reserve (Fed) officials, including Chairman Jerome Powell and Vice Chair Clarida, also contribute to the market’s sluggish performance.
Read: Asian stocks dwindle, US Treasury yields refresh 11-week top ahead of Fed Chair Powell
At home, India’s coronavirus infections rose 31,382 versus 31,923 cases whereas the covid-led death toll rose from 282 to 381 as per the latest official data for Thursday.
It’s worth noting that Fed’s hawkish halt on Wednesday joined receding fears of Evergrande default and progress over the US $3.5 trillion stimulus talks to back the risk-on mood on Thursday.
While portraying the mood, Asia-Pacific stocks trade mixed and the US Dollar Index (DXY) struggles for clear direction while the US 10-year Treasury yields refresh 11-week top to 1.451%, following the heaviest daily jump since February. Additionally, S&P 500 Futures print 0.05% intraday gains by the press time.
Moving on, mild optimism in the market and a lack of negatives from India, as well as hopes of no third COVID-19 wave in New Delhi, can keep USD/INR bears hopeful. However, headlines concerning Evergrande and Fed will join second-tier US data to entertain traders.
Technical analysis
Thursday’s bearish Doji directs USD/INR towards 200-DMA retest, around 73.58 by the press time. Meanwhile, bulls need to overcome a descending resistance line from July 19, near 73.90 by the press time, to retake the controls.
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