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WEDNESDAY USDINR & GLOBAL FX :- USDINR FIRM, DOLLAR BOUNCE, YEN DEEP TROUBLE, RBA HIKE RATE!!

USDINR

On Wednesday, The domestic unit (Rupee) is most likely to commence session with weak sentiment between 79.90 – 80.00 as dollar marched higher on Tuesday after a report on the U.S. services industry in August reinforced the view that the United States was not in recession.

  • India has set up a panel to review the pricing formula for locally produced gas to ensure a "fair price to the end consumer", according to a government order seen by Reuters, a move aimed at lowering inflation and boosting use of the cleaner fuel.

  • Deutsche Bank estimates that India's consumer price index (CPI) firmed to 6.9% year-on-year in August, while core inflation likely stood at 6%.

USDINR TECHNICAL

Day Trend: - BUY ON DIP

Weekly Trend: - UPSIDE SELL

INTRADAY RANGE – 80.43 (80.15 – 79.83) 79.71


USA 10 YEAR YIELDS

The yield on benchmark 10-year U.S. Treasury notes jumped 14.3 basis points to 3.35% to highs last seen in June, on expectations the Federal Reserve will keep hiking interest rates as it tightens monetary policy in a bid to quell inflation.


USDJPY

The Japanese yen tumbled trading at 143 level per dollar on early Wednesday session, a fresh 24-year low, as the gap between Japanese monetary policy and that elsewhere becomes ever more stark, weighing on the currency.

  • Japanese Finance Minister Shunichi Suzuki on Tuesday reiterated that sharp yen moves were "undesirable" and that he was watching rising volatility in the exchange market with a "great sense of urgency" as the currency hit a fresh 24-year low.


AUSTRALIA

The Australian dollar slid to a seven-week low after the Reserve Bank of Australia raised its cash rate by 50 basis points, but signalled it was not on a present path for future rate hikes.


YUAN

The yuan slipping to a fresh two-year low of 6.9784 in offshore trade. The china authorities' efforts to slow the yuan's recent depreciation were proving unsuccessful.


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