US Dollar stays bid around 95.30 ahead of US PPI
- The index remains well supported by the 95.00 area this week.
- Yields of the US 10-year note rebounds to 2.96%.
- July’s Producer Prices and weekly Initial Claims next on tap.
The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main rivals, is trading on a positive note around the 95.25/30 bannd.
US Dollar looks China, Russia, data
After two consecutive daily pullbacks, the index has recovered the smile in the second half of the week, although a test/surpass of the 95.50 area still remains elusive.
DXY keeps looking to the US-China trade dispute as the almost exclusive driver behind the price action as of late, although recent US sanctions against Russia could also add another front to look at in the near term.
The buck also found some stabilization following the consolidative performance from the Chinese Yuan, while USD/CNY appears well underpinned around the 6.80 neighbourhood.
Data wise, Producer Prices for the month of July will be the salient event today seconded by the usual weekly Initial Claims.
US Dollar relevant levels
As of writing the index is gaining 0.03% at 95.14 and a breakout of 95.20 (high Aug.6) would aim for 95.38 (high May 29) and then 95.53 (high Jun.28). On the downside, the next support is located at 94.98 (low Aug.3) seconded by 94.93 (10-day SMA) and finally 94.83 (21-day SMA).
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.
