Rupee was little changed against the U.S. dollar as traders kept away from taking major positions amid mixed cues .A few banks sold the dollar on hope that rise in local share market may spur inflows from foreign funds. Firm global shares globally raised expectations that the rupee may gain, but dollar demand from some banks noting its rise globally limited the rise. U.S. Dollar was sold most the day as equities around the world rallied on news that the Obama Administration would be looking to create a bad bank to hold toxic assets. The losses were reversed after guidance from the FOMC that buying of US treasuries from the FED was not a sure thing. Looking ahead for December Durable Goods are expected to drop -2% vs. -1.5% previously. Also released, December New Homes Sales are forecast at 0.4m vs. .407m previously.
Technical Outlook:
USDINR chart pattern gives mixed signals and currency is expected to trade in the range of 48.72-49.02 levels for the day. With good support seen at 48.68 levels .key resistance is seen at 49.10 levels. Stochastic is seen trending down waiting for crossovers and the currency is seen trading below the moving average.
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