US Dollar hovering over daily lows near 95.10
|- The index erodes its early gains and drops to the vicinity of 95.10.
- US 10-year yields clinch highs around the 2.95% handle.
- US JOLTs Job Openings, NFIB index next on tap.
The US Dollar Index (DXY) has given away initial gains and has now receded to the current 95.15/10 band, or session lows.
US Dollar looks to trade, data
The index is trading weekly lows in the boundaries of 95.10 following a pick up in the demand for the Chinese Yuan, which dragged USD/CNY to fresh lows in the 6.83 neighbourhood.
In this regard, the PBoC said its FX reserves climbed to $3.118 trillion at the end of July, adding that the reserve levels will stay stable overall. The central bank noted financial asset price fluctuations, changes in non-dollar currencies all collaborated with higher reserves last month.
The PBoC also noted that volatility in financial global markets is poised to increase and that the fluctuation in CNY has increased considerably.
In the meantime, the US-China trade dispute remains poised to drive the markets’ sentiment for the time being.
In the data space, JOLTs Job Openings during June are coming up next seconded by the NFIB index and the weekly report on US crude oil inventories by the API.
US Dollar relevant levels
As of writing the index is losing 0.27% at 95.12 facing the next support at 94.98 (low Aug.3) seconded by 94.80 (10-day SMA) and finally 94.50 (55-day SMA). On the upside, a breakout of 95.20 (high Aug.6) would aim for 95.38 (high May 29) and then 95.53 (high Jun.28).
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