- 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.
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
|Today last price||92.67|
|Today Daily Change||0.01|
|Today Daily Change %||0.01%|
|Today daily open||92.66|
|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.