USDINR WEDNESDAY OUTLOOKS: - USDINR IN RANGE, ALL EYES ON FED, MXN WEAK, ASIA RECOVER !!

USDINR

On Wednesday, USDINR is most likely to commence the session within a range between 74.46 - 74.55 levels, but it seems vulnerable in upper levels. For a couple of days Pair directly correlated with nifty50, but pair intact within a bullish trend.

• In an update to its World Economic Outlook (WEO), the IMF forecast emerging Asia will grow 7.5% this year, down 1.1% points from its previous projection made in April.

• IMF said, Growth prospects in India have been downgraded following the severe second COVID wave during March-May and expected slow recovery in confidence from that setback.

Day Trend: - UPSIDE SELL.

INTRADAY RANGE – 74.78 ( 74.59 – 74.38 ) 74.18

THE FED

The Federal Reserve is expected to maintain its interest rates at 0.25%. However, all eyes are focused on the statement and post-decision press conference hosted by the Fed’s chairman Jerome Powell.

USDMXN

The Mexican peso (USD/MXN) lost 1.30% since reaching a peak of 20.12 on July 21. It has now tested its 200-day moving average, which is now at 19.96. If the pair manages to break below that level, it will face support at 19.90, where dynamic uptrend support coming from June 9 lies. Next supports are identified at 19.80, July 13 low, and the 19.74 level, which is July 2 minimum. Then, the 2021 lows area at 19.55 would be exposed.

INDICES

• Nikkei 225 fell 1.15% by 11.09 PM ET.

• KOSPI down 0.02%.

• ASX 200 was down 0.76%.

• Hang Seng rose 0.65%.

• China’s Shanghai Composite was down 0.35% and the Shenzhen Component recovered almost 1.5% loss and trading positively at 0.07%.

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