USDINR
On Wednesday, All eyes are on the RBI Interest Rate decision first half of the day, mostly market expected a 0.40 – 0.50 bps hike. The Domestic unit commence a session between 77.65 – 77.75 levels against the greenback which is trading well above 50 DMA after a hefty rate hike by Australia’s central bank prompted further inflation concerns, causing U.S. bond yields to soar.
THE RBA
On Tuesday, The Reserve Bank of Australia raised its key rate by 50 basis points, a more hawkish move than the 25 basis point increase that most had expected, while also committing to doing "what is necessary" to cool inflation.
The fact the Australian policymakers felt the need to increase interest rates by a hefty half a percentage point has caused nerves to fray ahead of Friday’s U.S. consumer price figures, especially after the strong U.S. jobs data at the end of last week.
THE YIELDS
The
The 10-year U.S. Treasury yield was last seen trading at 3.047%, at levels seen for the first time in nearly four weeks.
The 10-year India Treasury yield last traded at 7.52%.
The 10-year German Treasury yield last traded at 1.30%.
THE OIL
Oil prices gained about 1%, with U.S. crude settling at a 13-week high on supply concerns, including no nuclear deal with Iran, and prospects for demand growth in China, which is relaxing lockdowns to control the pandemic.
USDINR TECHNICAL
Day Trend: - BUY ON DIP (Short Term)
Weekly Trend: - HOLD
INTRADAY RANGE – 78.00 (77.80 – 77.61) 77.41
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