Manoj Kumar Jain
Director & Head of Commodity Research, IndiaNivesh
NiveshDaily Currency
Dollar/rupee ended over one-week high Tuesday on buying by nationalized banks likely on behalf of oil importers amid likely $1 billion worth ETF-related outflows. Dollar traded higher as sentiments improved on hopes of reaching a comprehensive deal between US and China at the end of the current trade negotiation session.
Technical, after breaching the resistance 70.25, USDINR tested 70.39 and settled at 70.3450 levels. Formation of long bullish candle stick on the EOD chart along with breakout of its immediate resistance is indicating for bullishness and near term upside target would be 70.55. On the downside, support is 69.90-69.55.
Major Economic Data & Events Released Yesterday/Earlier today
#Euro zone economic sentiment eased to 107.3 points in December from 109.5 in November.
#Sentiment in industry fell to 1.1 points from 3.4 in November, against market expectations of a 2.9 point reading.
#Australia’s domestic trade surplus declined more than expected to AUD 1.93 billion ($1.38 billion) in November compared to AUD 2.01 billion in October.
#US Job openings, a measure of labor demand, dropped by 243,000 to a seasonally adjusted
#6.9 million, the Labor Department said.
#reading since July 2017.
NiveshDaily Commodity
Gold prices down on U.S.-China trade talks; weak rupee hold prices at MCX. Trend firm
Yesterday, both the precious metals were traded weak in international markets. Gold settled at $1285.90 per troy ounce down by 0.31% while silver settled at $15.70 per troy ounce down by 0.38%. Domestic markets were settled positive. Gold settled at Rs.31741 per 10 gram with the gain of 0.29% and MCX Silver settled at 39337 per 1 kilogram with the gain of 0.29%.
Continuous optimism over the U.S.-Sino trade talks are keeping gold bugs away from reattempting $1,300. Gold, a hedge for financial and political troubles, fells a touch on Tuesday after U.S. Commerce Secretary Wilbur Ross said there was a very good chance for Washington to resolve its months-long trade war with Beijing. President Donald Trump also tweeted that talks with China are going very well.
Weakness in rupee supports prices in domestic markets. We expect final outcome of U.S.-China trade talks will give further direction to the market.
