US Dollar Index consolidates post inflation run-up towards 93.00 amid sluggish session


  • DXY holds onto previous day’s recovery from weekly low.
  • US inflation came in softer-than-expected in August but couldn’t beat tapering concerns.
  • Market sentiment improves of late amid easing virus numbers, vaccine hopes.
  • China data, risk catalysts can entertain traders ahead of US Industrial Production.

US Dollar Index (DXY) bulls take a breather at around 92.65 during the Asian session on Wednesday.

The greenback gauge witnessed a volatile session the previous day that initially saw a fresh weekly low before a firmer daily close, mainly due to the mixed concerns over the US Consumer Price Index (CPI) data. Also favored the quote were fears of hurricane Ida and covid.

The US CPI dropped the most since January on monthly basis to 0.3% versus 0.4% expected and 0.5% prior. The CPI ex Food & Energy also dropped below 0.3% expected and previous readings to 0.1% during August, marking the biggest fall in six months.

Even if the inflation numbers eased during August, market sentiment worsened amid chatters that the figures are still high enough to help the Fed hawks push for tapering when they meet next week

Elsewhere, virus woes remain on the table despite the recently easing covid figures, as well as the UK, Australia and the US push for faster jabbing. That reason could be linked to Goldman Sachs’s analysis suggesting that US President Biden’s six-pronged strategy to battle with the virus may not win.

It should be noted that the hurricane Ida and tropical storm Nicholas challenge US energy firm in the Gulf and weighs on the risk appetite as well.

That said, US 10-year Treasury yields consolidate the biggest daily loss in a month around 1.29% whereas the S&P 500 Futures print mild gains by the press time.

Moving on, US Industrial Production for August, expected to ease from 0.9% to 0.5%, could offer intermediate DXY moves ahead of Thursday’s key Retail Sales data. Also important will be the risk catalysts including chatters over US stimulus, COVID-19 and geopolitics.

Technical analysis

Unless refreshing the monthly low, currently around 91.95, US Dollar Index remains directed to a two-month-old horizontal resistance near 93.20.

Additional important levels

Overview
Today last price 92.67
Today Daily Change 0.01
Today Daily Change % 0.01%
Today daily open 92.66
 
Trends
Daily SMA20 92.74
Daily SMA50 92.64
Daily SMA100 91.74
Daily SMA200 91.38
 
Levels
Previous Daily High 92.68
Previous Daily Low 92.32
Previous Weekly High 92.86
Previous Weekly Low 92.1
Previous Monthly High 93.73
Previous Monthly Low 91.82
Daily Fibonacci 38.2% 92.54
Daily Fibonacci 61.8% 92.46
Daily Pivot Point S1 92.43
Daily Pivot Point S2 92.19
Daily Pivot Point S3 92.07
Daily Pivot Point R1 92.79
Daily Pivot Point R2 92.91
Daily Pivot Point R3 93.15

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD extends sideways grind around 1.1650 after mixed US data

EUR/USD is struggling to find direction on Thursday and continues to fluctuate in a relatively tight range around mid-1.1600s. Mixed data releases from the US don't seem to be having a noticeable impact on the greenback's performance against its major rivals.

EUR/USD News

GBP/USD struggles to pull away from 1.3800

GBP/USD retraced a portion of Wednesday's during the European trading hours pressured by the renewed USD strength and the souring market mood. With the latest US data failing to trigger a reaction, the pair stays in a consolidation phase near 1.3800.

GBP/USD News

XAU/USD struggles for direction, flat-lined above $1,780 level

The risk-off impulse in the markets extended some support to the safe-haven gold. Elevated US bond yields, a modest USD strength capped the upside for the metal. Bulls need to wait for a move beyond the $1,800 mark before placing fresh bets.

Gold News

Buying Solana now to gain 700% profits by 2022

Solana price has been on a massive run-up in 2021 from $1 to $216 in roughly eight months. This stellar climb is likely to continue into 2022 as significant bullish signs emerge. Moreover, the start of a new bull run will serve as a tailwind for SOL.

Read more

Netflix: Three reasons to sell NFLX after earnings

NFLX has been strong into earnings as investors digested the massive success of Squid Game and hoped this would feed through into very strong subscriber numbers. Netflix was out straight after the bell with earnings.

Read more

Forex MAJORS

Cryptocurrencies

Signatures