- USD/INR is declining toward 82.00 as investors are yet to discount the overnight sell-off in the USD Index.
- Weak US Job Openings data is indicating that the tight US labor market is cooling-off.
- S&P500 futures have added nominal gains after a bearish Tuesday, portraying caution in the overall market mood.
The USD/INR pair is declining towards the immediate support of 82.00 in the Asian session. The major is expected to continue its downside journey as investors are yet to discount overnight sell-off in the US Dollar post-release of the weak United States Jobs Openings data.
After a fifth straight contraction in the US manufacturing sector, the US hiring department has slowed down recruitment amid higher interest rates by the Federal Reserve (Fed). Job Openings have fallen below 10 million for the first time since 2021, which indicates a bleak outlook. This has also fueled fears of a decline in the employment generation data ahead, which could bolster the need of pausing rate hikes sooner.
S&P500 futures have added nominal gains in the Asian session after a bearish Tuesday, portraying caution in the overall market mood. Investors liquidated longs on Tuesday as weak Job Openings data indicates a potential slowdown in the US economy ahead. The US Dollar Index (DXY) is juggling around 101.50 and looks prone to further downside amid an absence of supportive triggers.
The demand for US government bonds has slowed after a sheer upside. The 10-year US Treasury yields have rebounded to near 3.36%.
Going forward, investors will keep an eye on US Automatic Data Processing (ADP) Employment data. According to the estimates, the US economy has added fresh 200K jobs in March vs. an addition of 242K jobs in February. Less-than-anticipated US job data would solidify the fact that the US labor market has started slowing down and Fed chair Jerome Powell could look for keeping rates steady till 5%.
On the Indian Rupee front, higher oil prices are expected to keep it on the back foot. It is worth noting that India is one of the major importers of oil and higher oil prices are expected to increase the current account deficit of India. Also, a power-pack action is expected as Indian markets will open today after the holiday of Mahavir Jayanti on Tuesday.
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Rubi Culton