US Dollar flirting with highs post-US data
The US Dollar Index, which tracks the buck against a basket of its main rivals, ahs recovered the upper bound of the range after positive results from the US docket.
US Dollar bid near 95.50
The index managed to rebound from the 95.40 region after US GDP figures showed the economy has expanded 1.4% QoQ during the April-June period and inflation figures tracked by Core PCE rose at an annualized 1.8% during the same period.
Further results saw Initial Claims at 254K WoW, taking the 4-Week Average to 256.00K from 258.25K. In the same auspicious line, Goods Trade Balance showed the trade deficit shrunk to $58.4 billion during last month.
Later in the session, USD will remain in centre stage in light of the release of Pending Home Sales and speeches by Atlanta Fed D.Lockhart (2018 voter, dovish), J.Powell (permanent voter, neutral), Minneapolis Fed N.Kashkari (2017 voter, neutral) and Kansas City Fed E.George (voter, hawkish), all preceding the speech by Chair J.Yellen on Conversation with conference participants At the Banking and the Economy: A Forum for Minority Bankers
US Dollar relevant levels
The index is gaining 0.13% at 95.56 and a break above 95.98 (200-day sma) would aim for 96.31 (spike post-BoJ Sep.21) and finally for 96.50 (high Aug.5). On the flip side, the immediate support lines up at 94.90 (support line off 2016 low) ahead of 94.44 (low Sep.8) and finally 94.05 (low Aug.18).
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.
