USD/INR Price News: Indian Rupee remains depressed near 82.80 cautious mood, US inflation, RBI eyed

• USD/INR clings to mild gains during two-day winning streak, edges higher of late.
• Mixed concerns about economic developments, central bank talks weigh on sentiment ahead of top-tier data.
• China Trade Balance rose in July but details appear less impressive.
• Risk catalysts eyed for clear directions ahead of US inflation, RBI Interest Rate Decision.

USD/INR seesaws around the intraday high of near 82.80 as it prints a two-day uptrend amid early Tuesday. In doing so, the Indian Rupee (INR) pair justifies the market’s cautious mood ahead of this week’s top-tier data amid a lackluster Asian session. That said, the growing fears of slower economic growth in Asia join mixed comments from the major central banks to favor the bulls ahead of the key US inflation numbers and monetary policy announcements of the Reserve Bank of India (RBI) up for publishing on Thursday.

China’s warning about using the face recognition system joins the latest Japan-China tension and the Sino-US tussles to weigh on the sentiment amid a light calendar and lackluster yields.

Elsewhere, mixed statements from the Federal Reserve (Fed) and the Bank of England (BoE) officials joined the unclear concerns about the Bank of Japan (BoJ) and the European Central Bank (ECB) to weigh on the risk appetite.

On Monday, Fed Governor Michelle Bowman said that additional rate increases will likely be needed to lower inflation back to target. On the contrary, New York Fed President John C. Williams said he expects that interest rates could begin to come down next year. Fed’s Williams also conveyed hopes of witnessing a slightly higher unemployment rate as the economy cooled.

While portraying the mood, S&P500 Futures prints mild losses around 4,530 as it retreats towards the monthly low marked the last Friday, reversing the first daily gain in five marked on Monday. That said, the US 10-year and two-year Treasury bond yields remain pressured around 4.06% and 4.76% by the press time. It’s worth noting that the US Dollar Index (DXY) manages to extend the week-start rebound above 102.00.

It should be noted that the recently downbeat prices of Oil, India’s biggest import burden, caps the USD/INR prices amid anxiety ahead of the key US Consumer Price Index (CPI) and the RBI Interest Rate Decision.

While the softer US inflation data may recall the USD/INR sellers, the RBI’s likely status quo may defend the Indian Rupee bears moving forward.

Technical analysis

A two-week-old rising support line, around 82.70 by the press time, puts a short-term floor under the USD/INR prices, which in turn joins upbeat RSI and MACD signals to direct the buyers toward the monthly high of around 82.90 before challenging the 83.00 threshold.