Rupee moved in a narrow band with a weak bias despite Reserve Bank of India cutting Repo and Reverse Repo rate by 50 basis point seach in a bid to revive slowing economy and boost lending to productive sectors ,higher non-deliverable forwards and losses in domestic shares combined to weigh down sentiment.some Asian shares gave up gains on uncertainty over the stimulus package likely to be announced by the Chinese government in the near future.U.S. Dollar hit new multi-month highs in early Asia as Australia GDP surprised to the downside and the Euro broke through 1.25. The stock market then stabilized and actually started to gain as rumors swept the market of a new Chinese stimulus package. On the same subject Chinese PMI increased to 49 from 45 last month and added to speculation China may rebound from the current slowdown. January Non-Manufacturing for February came in at 41.6 vs. 42.9 previously. February ADP National Employment at -697K vs. -522K previously. Looking ahead for Weekly Jobless Claims forecast at 650K vs. 667K previously.
Technical Outlook:
USDINR chart pattern indicates sideways movement for the day. With the trading range between 51.20-51.90 levels. With good support seen at 51.10 levels and key resistance at 52.03 levels. Stochastic is seen trending up giving indication of a small upward correction and currency is trading on the moving averages only break on either side can confirm the trend.
No comments:
Post a Comment