US Dollar Index stays depressed below 93.00, looks to data

  • DXY fades the initial uptick above the 93.00 yardstick.
  • US Durable Goods Orders surprised to the upside in September.
  • The Conference Board’s Consumer Confidence comes up next.

The greenback, in terms of the US Dollar Index (DXY), reverses the initial optimism and returns to the sub-93.00 area on turnaround Tuesday.

US Dollar Index meets resistance near 93.15

The index lost upside momentum just above 93.00 the figure on the back of the resumption of the demand for the risk complex, all amidst alternating risk appetite trends.

In the docket, Durable Goods Orders expanded at a monthly 1.9% in September. Results from the housing sector saw the House Price Index rising 1.5% MoM in August while the S&P/Case-Shiller Index rose 5.2% YoY during the same period. Later in the NA session the Conference Board will release its Consumer Confidence reading for the current month.

What to look for around USD

The index managed to leave behind the downside pressure observed during last week and has reclaimed the 93.00 barrier and above so far this week. The current recovery in the dollar follows a change of heart among investors in response to the impact of the pandemic on the global growth prospects as well as fading chances of a deal between Democrats and Republicans over a new stimulus bill. However, the view on the buck is expected to deteriorate in case of a “blue wave” following the presidential elections next month, while the “lower for longer” stance from the Federal Reserve also caps occasional bullish attempts.

US Dollar Index relevant levels

At the moment, the index is losing 0.21% at 92.87 and faces the next support at 92.47 (monthly low Oct.21) followed by 91.92 (23.6% Fibo of the 2017-2018 drop) and then 91.80 (monthly low May 2018). On the upside, a break above 93.90 (weekly high Oct.15) would expose 94.20 (38.2% Fibo retracement of the 2017-2018 drop) and finally 94.74 (monthly high Sep.25).

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