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USDINR - Weekly Outlook: May 13 - 17

Release Time:2019-05-13 02:37

Market Commentary 

Rupee dropped on concerns over escalating trade tension between the US-China, which dampened the risk appetite of global investors. Now, investors nervously await the two-day trade talks in Washington to see if Chinese negotiators can convince the White House to back down on a threatened tariff hike due on Friday. Chinese Vice Premier Lie travelled to Washington to salvage a deal that would avoid a sharp rise in tariffs on Chinese goods ordered by the US President Donald Trump. While steeper tariffs are set to take effect on Friday, US President Donald Trump tweeted that Chinese trade officials are coming to Washington to "make a deal" in a new round of talks. India’s services sector expanded at its slowest pace in seven months in April as some businesses postponed decisions and expansion plans until seeing results of the general election currently underway, a private survey showed. The Nikkei/IHS Markit Services Purchasing Managers’ Index slipped to 51.0 in April, the lowest since September, down from 52.0 the previous month. It remained above the 50 mark, the threshold separating growth from contraction, for an 11th consecutive month. Although foreign demand grew at the quickest pace in 10 months, a sub-index tracking new business slipped to a 7-month low of 51.2 in April from March’s 52.3 as firms raised prices slightly more sharply - although still modestly. Technically now USDINR is getting support at 69.805 and below same could see a test of 69.645 level, And resistance is now likely to be seen at 70.16, a move above could see prices testing 70.355. 

Technical Outlook

 USDINR trading range for the day is 69.69(143.49) -70.5(141.84).