13 April 2022
World Market – Headlines
The euro is being pushed down by dwindling expectations for peace, while the New Zealand dollar is jittery ahead of the rate decision.
Asia-Pacific stocks are divided following a strong U.S. inflation report; China’s trade data is due soon.
Oil prices are rising due to a tight supply picture and Russia’s rejection of peace talks.
Currency
Indian Rupee
USD/INR Spot (76.05): Yesterday, the USD/INR began marginally higher at 76.0200 against the previous day’s closing of 75.9500 levels, reflecting negative sentiment in Asian stock markets and an increase in oil prices. The pair hit a low of 75.98, but buying activity in fixing propelled it to a high of 76.1775 before closing at 76.1200 levels.
After remarks from FED Governor Lael Brainard, who reaffirmed the need for the central bank to “expeditiously” address decades-high inflation, US equities reversed their gains and finished down. Due to ongoing supply chain issues, growing demand, and rising energy prices, inflation in the United States reached its highest level of 8.5 percent since 1981. Due to a continuous rise in food costs, India’s retail inflation came in at 6.95 percent yesterday, well beyond the RBI’s upper tolerance zone for the third month in a row.
USD/INR intraday support is near 75.9800, 75.9100, while intraday resistance is near 76.1450. An unexpected drop below 75.91 would signal the possibility of further weakness to 75.77 levels. In order to keep the positive expectation of a later rally towards 76.35 and 76.5800 levels by next week alive, the decline should not surpass 75.91.
75.9100 to 76.1975 is the day’s range.
Other Currencies
On Wednesday, the euro fell to a five-week low, while commodity currencies gained ground as hopes for peace in Ukraine dimmed, and traders braced for volatility in the New Zealand dollar ahead of an expected rate hike.
At 125.47 per dollar, the yen was under pressure, barely above significant support at 125.86.
In early trade, the pound fell to $1.2999, slightly below $1.30.
The Australian dollar retreated from overnight gains fueled by a $0.7440 rise in oil prices.
If the RBNZ raises the cash rate by 50 basis points and makes a hawkish announcement about further big rises, the NZD/USD might move closer to $0.7000.
Equity
Indian Equity
The market is expected to open in the red, with trends on the SGX Nifty indicating a 51-point drop for the broader index.
On the daily charts, the BSE Sensex fell roughly 400 points to 58,576, while the Nifty50 fell 145 points to 17,530, forming a small bearish candle that resembled a Hammer pattern formation.
The pivot charts show that the Nifty’s important support level is 17,450, followed by 17,370. The major resistance levels to watch if the index rises are 17,603 and 17,676.
Other Markets
In early Wednesday trade, Asian stocks were neutral as investors awaited market reaction to the release of a somewhat hotter-than-expected US inflation report.
The Shanghai composite fell 0.7 percent, and the Shenzhen component fell 0.91 percent. The Hang Seng index in Hong Kong fell 0.48 percent as well.
In Japan, the Nikkei 225 index rose 1.25 percent, while the Topix index rose 0.68 percent.
The Kospi in South Korea gained 0.78 percent, while the S&P/ASX 200 in Australia gained 0.24 percent.
Outside of Japan, MSCI’s broadest index of Asia-Pacific equities rose 0.22 percent.
The Dow Jones Industrial Average dropped 87.72 points, or 0.26 percent, to34,220.36, the S&P 500 dropped 15.08 points, or 0.34 percent, to4,397.45, and the Nasdaq Composite sank 40.38 points, or 0.3 percent, to 13,371.57.
OIL
Oil prices rose on Wednesday on concerns that falling output in sanctions-hit Russia, the world’s second-largest oil exporter, may limit supply, following Moscow’s announcement that peace negotiations to stop its invasion of Ukraine had reached a stalemate.
Brent crude futures increased by 59 cents, or 0.6 percent, to $105.23 per barrel, while WTI crude futures in the United States increased by 60 cents, or 0.6 percent, to $101.20 per barrel. The previous session saw both contracts rise by more than 6%.
Oil prices rose fractionally in Asia trade hours, with international benchmark Brent oil futures increasing to $104.70 per barrel. Crude futures in the United States rose 0.13 percent to $100.73 per barrel.
Economic Events
Economic Calendar | ||||
Wednesday, Apr 13, 2022 | ||||
Time | Country | Event | Forecast | Previous |
11:30 | GBP | CPI (YoY) (Mar) | 6.70% | 6.20% |
11:45 | JPY | BoJ Governor Kuroda Speaks |
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14:30 | EUR | Industrial Production (MoM) (Feb) | 0.10% | 1.30% |
18:00 | USD | PPI (MoM) (Mar) | 1.10% | 0.80% |
20:00 | USD | Crude Oil Inventories | 0.863M | 2.421M |
20:30 | CAD | BOC Press Conference |
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Prepared by
Anushree Saxena(Intern)
Disclaimer: All information in this report is collected from various sites on the internet. Although we have taken all precautions for the correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed are the author’s own views. We are not responsible for any losses on account of following the same.
Sources
