US Dollar jumps to fresh highs near 94.50

The index advances to the mid-94.00s or fresh daily tops.
DXY finds support in session lows in the 94.20/15 band.
Consumer Confidence surprised to the upside in July.

Pablo Piovano FXStreet

The greenback, in terms of the US Dollar Index (DXY), has reverted the negative start and is now trading in session tops in the mid-94.00s.

US Dollar propped up by data

The index posted a strong rebound after finding quite decent support in the 94.20/15 area, where lies the key short-term support line off June’s low.

DXY meet extra buying pressure after US Consumer Confidence measured by the Conference Board came in above expectations at 127.4 (vs. 126.5 exp. and 127.1 prev.) for the current month.

Earlier in the session, US inflation figures gauged by the Core PCE rose at an annualized 1.9% in June, a tad below estimates. Additionally, Personal Income and Personal Spending expanded 0.4% MoM during the same period, matching prior surveys.

Later in the week, the FOMC is expected to leave its monetary policy on hold at tomorrow’s meeting, while July’s ISM Manufacturing is seen a tad lower at 59.4 from June’s 60.2.

US Dollar relevant levels

As of writing the index is gaining 0.16% at 94.51 and a breakout of 94.91 (high Jul.27) would target 95.53 (high Jun.28) en route to 95.65 (2018 high Jul.19). On the flip side, the next support emerges at 94.17 (low Jul.31) seconded by 94.08 (low Jul.26) and finally 93.71 (monthly low Jul.9).

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.

AUD/USD flirts with 0.7000, lowest since early August amid bullish USD

AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight. Against the backdrop of the hawkish Fed, a two-day rally in oil prices revives inflation fears and continues to push US bond yields to multi-year highs. Adding to this, geopolitical risks lift the US Dollar to a two-month high, overshadowing RBA rate hike bets and weighing on the pair.

USD/JPY pulls back from three-week high after failing near 159.00

USD/JPY edges lower during the Asian session on Friday, stalling its recent strong move to a three-week high of 159.00 as Japanese Yen bears turn cautious amid intervention fears. Meanwhile, the US Dollar retains a strong bullish undertone as the Fed's hawkish outlook and oil-driven inflation fears continue to push US bond yields to multi-year peaks. Furthermore, the BoJ's dovish rate hike last week might cap JPY and support spot prices.

Gold treads water below $4,300

Gold grabs some buying attention and advances marginally at the end of the week, partially retracing the weekly decline, although it is still navigating below the key $4,300 mark per troy ounce. The fresh selling bias on the Greenback and the modest decline in US Treasury yields appear to support the humble advance in the precious metal.

Crypto Today: Bitcoin and Ethereum edge lower, XRP extends recovery as macro headwinds weigh

The broader cryptocurrency market is consolidating on Friday, with Bitcoin paring losses slightly above $84,000. Ethereum declines in tandem with BTC. Ripple (XRP), meanwhile, paints a different picture.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Federal Reserve (Fed) and the Bank of Japan (BoJ) have just done something remarkably similar. Both central banks raised interest rates by 25 basis points (bps) last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.