The US Dollar Index – which gauges the buck vs. its main rivals – has managed to regain some buying interest and is now returning to the 91.65/70 band, up smalls for the day.
US Dollar bid on USTs
The recovery in the index stays supported by the solid up move in yields of the US 10-year benchmark, recording fresh daily tops beyond the 2.22% level, up more than 20 bp since monthly lows in the 2.01% neighbourhood seen in earlier in the month.
In the meantime, USD is now posting gains for the first time after two consecutive daily pullbacks, although it still remains unable to test/surpass the critical 92.00 barrier on a more sustainable fashion.
In the data space, the NAHB index came in below expectations at 64 for the current month, while July’s TIC flows are expected later in the session.
In addition, the speculative community trimmed its USD speculative net shorts to 3-week lows in the week to September 12, as per the latest CFTC report.
Data wise today, the NAHB index is next on tap seconded by July’s TIC flows.
US Dollar relevant levels
As of writing the index is gaining 0.09% at 91.74 facing the initial resistance at 91.97 (10-day sma) followed by 92.43 (21-day sma) and then 92.66 (high Sep.14). On the flip side, a breakdown of 91.58 (low Sep.15) would open the door to 91.01 (2017 low Sep.8) and finally 89.65 (low Dec.25 2015).
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