US Dollar Index pushes higher, prints new 2021 highs near 95.80
- DXY advances further and surpasses 95.80, fresh tops.
- Higher US yields lend extra sustain to the buck on Tuesday.
- US Retail Sales, Industrial Production surprised to the upside.
The US Dollar Index (DXY), which tracks the greenback vs. a bundle of its main rival currencies, advances to fresh tops in levels last seen in late July 2020 in the 95.80/85 band on Tuesday.
US Dollar Index supported by yields, data
The index extends the optimism witnessed at the beginning of the week and motivates the dollar to record fresh tops in the 95.80 region on Tuesday.
Further rebound in US yields across the curve lend oxygen to the buck, while auspicious results from the US calendar were also supportive of the strong buying interest in the dollar.
On the latter, Retail Sales expanded at a monthly 1.7% in October, while Industrial Production expanded 1.6% MoM and Capacity Utilization ticked higher to 76.4% during the same period.
Later in the session, Business Inventories, the NAHB Index and TIC Flows are due along with FOMC’s speakers Daly, Harker, Bostic and Barkin.
US Dollar Index relevant levels
Now, the index is gaining 0.17% at 95.69 and a break above 95.82 (2021 high Nov.16) would open the door to 96 (round level) and then 97.80 (high Jun.30 2020). On the flip side, the next down barrier emerges at 93.87 (weekly low November 9) seconded by 93.69 (55-day SMA) and finally 93.27 (monthly low October 28).
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.
