U.S. Dollar strong US data failed to inspire fresh stock gains. News of China curbing investment sent commodities and risk currencies lower. New Homes sales rose 9% as expected and Durable Goods rose 4.9% vs. 3% forecast. One Dampener was core Durable goods that came in at 0.8% vs. 0.9% forecast. USD strength on the back of strong US data is new phenomenon starting to be digested by the markets. Looking ahead, Q2 Preliminary GDP is forecast at -1.5%. The Rupee edged lower in early trade as the dollar's gains versus majors overseas coupled with month-end dollar demand from importers and oil refiners hurt. Technically Indian unit is seen on a bull note and the currency is expected to take resistance at 49.12 levels .Currency is expected to trade in the range of 48.85- 49.08 levels for the day. Stochastic and Relative strength Index are still trending up .Good support is seen at 48.79 currency is also trading above the moving average confirming the uptrend. But caution required as market is in overbought areas.
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