Friday 17 July 2020
- Dollar holds gains on safe haven bid as economic risks grow
- Asia Pacific stocks mostly higher following Thursday’s plunge in mainland Chinese shares
- Oil prices steady as clouds gather over fuel demand, looser supply curbs
OUR TECHNICAL ANALYSIS – USD / INR
The Indian rupee is expected to trade little changed against the dollar as market participants focus on mixed U.S. data and coronavirus infection trends.
We expect a opening at around 75.15 in early trades. The Rupee is likely to get supported at 75.00 (Big figure) and if it breaks 75 then it may test 74.75.
The major resistance is at 75.30 (Bollinger Band top) and if it breaks that level then it may test previous double top at 75.50.
The dollar held onto gains against most currencies as worries that a resurgence in the coronavirus is starting to curb economic activity drew safe-haven flows into the U.S. currency.
One notable exception was the euro, which was well supported by hopes that European officials will agree on fiscal stimulus measures at a meeting starting later on Friday.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.307 following its decline from levels above 96.4 seen earlier in the trading week.
The Japanese yen traded at 107.27 per dollar, in a turbulent trading week that has seen the currency going from levels around 107.4 to below 106.8 against the greenback. The Australian dollar changed hands at $0.6981 after seeing levels around $0.7 yesterday.
Stocks in Asia Pacific mostly edged higher in Friday morning trade following Thursday’s drop that saw shares in China plunging more than 4%.
Mainland Chinese stocks edged higher in early trade after plunging on Thursday. The Shanghai composite advanced 0.12% while the Shenzhen component gained 0.54%. Hong Kong’s Hang Seng index rose 0.76%.
In Japan, the Nikkei 225 dipped 0.1% in morning trade while the Topix index shed 0.2%. South Korea’s Kospi advanced 0.59%. Over in Australia, the S&P/ASX 200 shed 0.11%.Overall, the MSCI Asia ex-Japan index traded 0.26% higher.
Oil prices were unchanged on Friday, with trading marked by growing uncertainty about global recovery in fuel demand as new COVID-19 cases surge in several countries just as major producers get set to loosen production curbs.
U.S. West Texas Intermediate (WTI) crude futures rose 1 cent to $40.76 a barrel , while Brent crude futures were steady at $43.37 a barrel. Both were still on track to end the week up slightly.