US Dollar stays subdued near 89.50
- The index extends the decline to lows in the mid-89.00s.
- US 10-year yields rebounded from lows in sub-2.80% zone.
- US Durable Goods Orders came in stronger in February.
The US Dollar Index remains unable to pick up some pace at the end of the week and keeps orbiting around the 89.50/40 area, or weekly lows.
US Dollar in 4-week lows
The greenback is suffering the increasing risk aversion in the global markets as investors remain concerned over the likeliness of a global trade war. These jitters have been exacerbated after President Trump announced on Thursday $60 billion tariffs on US imports from China.
Latest news on the matter cites Chinese Ambassador to the US saying the country is ready to increase its purchases from the US, stressing at the same time that China is still trying to avoid a trade war.
In the meantime, DXY stays firm on the way to close the first week in the negative territory after two consecutive declines, falling into the prevailing consolidative scheme playing since late February.
On the data front, US Durable Goods Orders surprised to the upside in February, while New Home Sales disappointed expectations during the same period.
US Dollar relevant levels
As of writing the index is down 0.36% at 89.51 facing the next support at 89.41 (low Mar.22) seconded by 89.07 (low Jan.26) and then 88.25 (2018 low Feb.16). On the other hand, a break above 89.89 (10-day sma) would aim for 90.44 (high Mar.20) would and finally 90.57 (high Feb.8).
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.
