• USD/INR prints the first daily loss in three, stays pressured around intraday low of late.
• China induces Asia-Pacific markets’ risk-on mood and weighs on US Dollar.
• Firmer Oil Price, anxiety ahead of ECB Forum and US data prod Indian Rupee buyers.

USD/INR returns to the bear’s radar, following a two-day absence, as it slides to 81.95 heading into Tuesday’s European session. In doing so, the Indian Rupee (INR) pair benefits from optimism in Asia, as well as the US Dollar’s positioning for the key data/events.

That said, the market sentiment remains mildly positive due to the risk-positive headlines surrounding China. Earlier in the day, the People’s Bank of China (PBoC) fixed a lower-than-expected USD/CNY price to weigh on the US Dollar and push back the chatters about the dragon nation’s economic weakness. On the same line was news was the alleged selling of the US Dollar by the Chinese state banks in the offshore currency markets, as well as the Asian lobbyists’ push for easies rules for Chinese equities’ overseas listing.

Furthermore, headlines suggesting an end to fears surrounding Moscow’s mutiny allow the traders to remain optimistic.

Alternatively, firmer Oil price joins the previous day’s upbeat US data and hawkish Fed signals to challenge the USD/INR bears.

WTI crude oil prints the biggest daily gains in three around $70.00 by the press time as hopes of more demand from China jostle with chatters of a Russia-inflicted supply crunch.

Elsewhere, US Dallas Fed Manufacturing Business Index for June improved to -23.2 versus -26.5 expected and -29.1 previous readings. During the last week, the US Core inflation for May allowed Fed Chairman Jerome Powell to remain hawkish but the Purchasing Managers’ Indexes for June weren’t impressive enough. Even so, Federal Reserve Bank of San Francisco President Mary Daly signaled on Friday that two more interest rate increases this year would be a "very reasonable projection."

Against this backdrop, S&P500 Futures print mild gains but the MSCI’s Index of Asia-Pacific shares outside Japan rises 0.80% intraday low while bouncing off the three-week low marked the previous day.

Looking ahead, multiple central bankers’ speeches from the European Central Bank (ECB) Forum will be important to watch for intraday market directions. Also, US Durable Goods Orders for May, expected -at 1.0% versus 1.1% prior, as well as the US Conference Board’s (CB) Consumer Confidence for June, expected to arrive at 103.90 versus 102.30 prior, shouldn’t be missed for intraday USD/INR guide