January 20, 2014: Mecklai Financial report on rupee

DXY INDEX

Currency	Trend		Exp. Range	Support			Spot	Support
	Weekly	Fortnightly		S3	S2	S1		R1	R2	R3
DXY INDEX	Neutral	Neutral	79.65-82.30	80	80.29	80.73	80.96	81.29	81.43	81.65

• Greenback and indices declined due to mixed set of economic releases yesterday. DXY Index declined by 0.42 percent whilemarked low of 80.77 levels against basket of six major currencies yesterday.
• US Indices traded in mix after recent batch of green sessions during the week. NASDAQ continued with its green run to surge by 0.09 percent while in contrast Dow Jones Industrial Average declined by 0.39 percent followed by S&P 500 inching down by 0.13 percent.
• Consumer Prices stood inline with expectations to mark levels of 0.3 percent as gasoline prices spiked for first time in past three months. Core CPI numbers surged by 0.1 percent against 0.2 percent reported earlier. Data insights indicated that energy and food component inched higher. Unemployment Claims surpassed expectations to post figures of 326K against 328K.
• Among minor set of releases, NAHB Index decline to mark levels of 56 against 57 earlier as single family home dropped. Philly Fed Manufacturing Index surged to 9.4 against 7.0 of previous month as shipments, new orders and employment component spiked higher. TIC Long Term Purchases missed expectations to mark decline of $29.3 billion as China increased holdings to $1.32 trillion.
• Asian markets continue to take cues from US indices as they traded mixed since morning. Hong Kong?s Hang Seng inched higher 0.63% by while in contrast KOSPI declined by 0.63% followed by Shanghai Composite Index edging down by 0.98 percent and lastly Nikkei 225 dipped by 0.03 percent. Greenback continues to strengthen across the board.
• Building permits would give more clarity over development in housing sector while JOLTS Job Openings will be crucial for gauging employment scenario of the economy. Along with above both mentioned releases Prelim Consumer Sentiment will remain key driver for DXY index later during the day.

DXY: DXY index failed to sustain above psychological levels of 81.00 for second consecutive session as it hovers around 80.96 levels since morning. Overall oscillators namely RSI, slow stochastic and MACD inch higher indicating up move for the day however range bound movement with upward bias is expected. DXY Index would continue to hold crucial support levels of 80.73 along with resistance levels 81.29 as stated in yesterday?s report for the day