- USD/INR takes the bids near intraday top, rises for the third consecutive day.
- India’s daily covid cases jump to all-time high above 100K, infections in China also renew.
- Bulls reject upbeat S&P 500 Futures, weak US dollar amid quiet Asian session.
- US PMI data, covid updates become the key.
USD/INR shrugs off US dollar weakness amid India’s coronavirus (COVID-19) woes, taking the bids near 73.42, during early Monday. In doing so, the pair prints a three-day winning streak but inactivity in Asia, due to off in major markets test the pair buyers.
As per the latest covid figures from the Indian Health Ministry, per Reuters, “India’s daily COVID-19 cases soared by 103,558 on Monday, the biggest such daily increase taking the total to 12.59 million.” The report also said that the death toll rose by 478 to 165,101.
China is another Asian country witnessing the fears of virus resurgence as fresh local cases in Yunnan bordering Myanmar triggered the biggest jump in daily cases, by 15, in over two months. “Genetic analysis of the cases discovered in Ruili suggests the new local infections stem from viruses imported from Myanmar, state media reported. Of the new patients reported in the city, 11 of them were identified as Myanmar citizens,” said Reuters.
Even so, S&P 500 Futures print 0.50% intraday gains whereas stocks in Asia-Pacific trade mixed as traders carry Friday’s optimism, backed by the upbeat US employment report, amid off in the key markets. Also battling the bears could be the chatters that US President Joe Biden may use special power to push his $2.25 trillion infrastructure spending plan through the Senate.
It should, however, be noted that the bulls need to be cautious as the US traders couldn’t get to cheer welcome jobs report and stimulus data and the same may weigh on the pair during today’s US session. Though, US PMI data for March will be important to watch.
Read: US Services Purchasing Managers’ Index March Preview: Expectations are high
Technical analysis
Sustained trading above 100-day SMA, around 73.20, enables USD/INR to pierce the key resistance line from June 2020, which suggests the pair’s run-up towards a 200-day SMA level of 73.70.