US Dollar Index pushes higher and approaches 93.00

DXY picks up further pace and trades closer to 93.00.
US Retail Sales came in below expectations in July.
US Industrial Production expanded more than estimated.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which tracks the greenback vs. a bundle of its main rivals, gathers extra steam and already trades at shouting distance from the key barrier at 93.00 on Tuesday.

US Dollar Index targets 93.00

The index extends the optimism at the beginning of the week and appreciates to levels near the 93.00 yardstick on the back of the solid note around the dollar, higher US yield and investors’ clear preference for the safe haven galaxy.

Indeed, US 10-year yields climbed to the 1.27% level after Retail Sales disappointed traders in July, contracting 1.1% and 0.4% on a monthly basis when comes to the headline print and the core reading, respectively.

Further data saw Industrial Production expanding 0.9% MoM during last month, Manufacturing Production rose 1.4% and Capacity Utilization ticked higher to 76.1%, all of them surpassing estimates.

Later in the session, the NAHB index is due seconded by Business Inventories, In addition, Chief Powell is due to participate in a Q&A session.

US Dollar Index relevant levels

Now, the index is gaining 0.34% at 92.93 and a break above 93.19 (monthly high Aug.11) would open the door to 93.43 (2021 high Mar.21) and finally 94.00 (round level). On the other hand, the next support emerges at 92.17 (50-day SMA) followed by 91.78 (monthly low Jul.30) and finally 91.51 (weekly low Jun.23).

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.

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