- INR traders await RBI policy.
- No surprises expected from RBI as inflation has been ticking up.
- India’s benchmark stock index, Nifty 50, above critical levels.
Reserve Bank of India will announce its policy decisions today at 6:15 GMT. The policy release was expected on an earlier date but got postponed. Market participants aren’t expecting any surprises and expect the central bank to maintain its benchmark lending rates at the current levels as the inflation figures have been ticking upward recently.
The announcement will also offer updated growth-estimates for the upcoming financial year.
Let’s check out the technical aspects affecting the USD/INR, which has been consolidating without any significant action in either direction after falling below the short-term rising support from late-August. The pair trading between 72.76 and 74.04 in recent days requires a breakdown below the lower limit of the range to test a move towards 72.14 – 72.40 inflexion zone.
The 50-day simple moving average is about to fall under the upper zone of consolidation, adding to the bearish pressure on the pair, if successful. A falling trendline from June will also aid the USD/INR bears which had acted as a critical level in late August.