US Dollar eases from tops on US data, around 89.40

The index lost upside momentum on softer US data.
The greenback climbed as high as the vicinity of 89.70.
US Consumer Confidence came in below forecasts in March.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main competitors is now deflating from earlier tops and receding to the 89.40 region.

US Dollar gives gains after data

A bout of buying pressure has lifted the index to fresh tops in the vicinity of 89.70 earlier in the session, although USD-bulls failed to sustain the up move so far.

In the meantime, the risk-associated space remains under pressure against the backdrop of month/quarter-end flows, with EUR, GBP and JPY reversing part of recent strong gains in favour of the buck.

Data wise in the US calendar, the S&P/Case-Shiller Index expanded more than expected at a non-seasonally-adjusted 6.4% YoY during January, while Consumer Confidence tracked by the Conference Board came in below estimates at 127.7 for the current month.

Additional data saw the Richmond Manufacturing Index at 15 for the month of March vs. 23 expected and February’s 28.

US Dollar relevant levels

As of writing the index is up 0.32% at 89.36 and a break above 89.63 (high Mar.27) would aim for 89.88 (23.6% Fibo of 95.15-88.25) and then 90.44 (high Mar.20). On the flip side, next support aligns at 88.92 (low Mar.27) seconded by 88.44 (low Jan.26) and then 88.25 (2018 low Feb.16).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.