USD/INR: Indian rupee wakes up after the successful moon landing

August 23, 2023 10:00 PM PDT | By Invezz

USD/INR: Indian rupee wakes up after the successful moon landing — Image source: Invezz

India moon landing

The Indian rupee regained momentum this week as India demonstrated its advancement in science and technology. The country’s Chandraayan-3 rover landed on moon on Wednesday and started collecting data.

This is a major achievement for India, being the fourth country to land on the moon after the US, Soviet Union, and China. It is also an important milestone as India flexes its muscle in the world economy.

Watch here: https://www.youtube.com/embed/QQKSASFdoDw?feature=oembed

As China’s economy deflates, many analysts are pointing to India to become a major growth engine for the world economy. Recent data shows that the India’s economy is growing at a faster pace than its peers.

The most recent estimates by the State Bank of India (SBI) calls for the economy to grow by 8.3% this year. That is a higher estimate than the Reserve Bank of India’s target of 7.8%. China, in contrast, is expected to expand by about 5% or lower this year.]

Therefore, if this trend continues, there is a likelihood that the Indian economy will overtake Japan in the coming years.

Looking ahead, the next catalyst for the USD/INR exchange rate will come from the United States. On Thursday, the US will publish the latest durable goods orders numbers that will show the strength of the manufacturing industry.

The most important catalyst will be the Jackson Hole summit in the United States. This meeting will provide Fed officials talk about the economy and what to expect in the coming meetings.

USD/INR technical analysis

Looking at the USD/INR daily chart, we see several things. First, the pair found a strong support at 83, the highest level on November 3rd, December 22nd, and February 14th. It also neared this resistance point several times this year.

The USD to INR pair made a false breakout earlier this month. Another observation is that the pair has formed an ascending trendline, the lowest levels since November 14th. It remains above the 50-day moving average.

Therefore, the pair will likely drop and retest the ascending trendline in the coming days. If this happens, the USD/INR will drop to about 82.10.

The post USD/INR: Indian rupee wakes up after the successful moon landing appeared first on Invezz.

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