DXY: Two-way intraday trades – OCBC
US headline PPI unexpectedly declined in August — marking its first drop in four months, with core readings (exclude food and energy) also surprised to the downside, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Two-way intraday trading for the DXY
"A softer-than-expected US PPI reinforced market expectations that the Fed will resume cutting rates next week, with 27bp of cuts priced for next week. In other news, US judge has ruled that Governor Lisa Cook will remain in her position and be able to participate in next week’s FOMC meeting."
"The DXY initially dipped on the dovish inflation surprise but quickly recovered, leaving the index little changed on the day. Looking ahead, tonight’s key events include the release of US CPI data and the European Central Bank (ECB) policy meeting."
"Against this backdrop, we anticipate two-way intraday trading for the DXY, with a bias towards selling rallies in the US Dollar. Resistance is at 98.10 levels (21, 50 DMAs), 98.70 (100 DMA) and 99.60 (23.6% fibo retracement of 2025 high to low). Support sits at 96.40 levels."
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FXStreet Insights Team
FXStreet
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