- The index is sidelined in the 96.50 area so far.
- The US 10-year yields ease from tops near 3.22%.
- US ISM Non-manufacturing next of relevance in the docket.
The US Dollar Index (DXY), which gauges the greenback vs. its main competitors, is trading within a sideline theme at the beginning of the week around the mid-96.00s.
US Dollar Index looks to data, trade
The index is looking to add to Friday’s post-Payrolls gains around the 96.50 region on Monday following the resurgence of the US-China trade effervescence and a weak opening of the Chinese Yuan vs. the buck.
In fact, the demand for the greenback has picked pace after comments by US L.Kudlow removed tailwinds from the likelihood of a US-China trade deal in the short-term horizon. On this regard, it is worth mentioning that President Trump and his Chinese peer Xi Jinping are expected to meet at the G20 gathering later in the month in Argentina.
In addition, the greenback appears supported by the solid report from the US labor market published on Friday, where the economy created more jobs than initially estimated during October.
Later in the session, the ISM Non-manufacturing is due along with Markit’s Services PMI for the month of October.
US Dollar Index relevant levels
As of writing the index is gaining 0.04% at 96.54 facing the next barrier at 97.19 (2018 high Oct.31) seconded by 97.87 (61.8% Fibo of the 2017-2018 drop) and then 101.34 (high Apr.10 2017). On the other hand, a break below 96.00 (21-day SMA) would aim for 95.35 (55-day SMA) and finally 94.79 (low Oct.12).
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