US Dollar tests lows in the 93.40/35 band

Pablo Piovano FXStreet

The US Dollar Index –which tracks the buck vs. its main rivals – is now surrendering its daily gains, coming down to test the 93.40/35 band.

US Dollar offered after Fedspeak

The index is challenging the area of daily troughs in sub-93.40 levels on Thursday, following lower-than-expected results from the weekly report of the US labour market and July’s producer prices.

USD stays offered after NY Fed W.Dudley (permanent voter, hawkish) said earlier in the session that he expects consumer prices to edge higher towards the 2% goal over the medium term. Dudley also argued that modest wage growth reflects sluggish productivity, while he now expects the labour market to strengthen further amidst moderate economic growth.

Looking ahead, USD will be in centre stage tomorrow in light of the release of US inflation figures tracked by the CPI for the month of July. Consensus among traders expects consumer prices to have gained 1.8% YoY and core prices to tick higher 1.7% over the last twelve months.

US Dollar relevant levels

The index is losing 0.02% at 93.39 following the next support at 93.14 (10-day sma) seconded by 93.12 (low Aug.8) and finally 92.39 (2017 low Aug.2). On the other hand, a break above 93.77 (high Aug.8/9) would aim for 94.11 (high Jul.26) and finally 95.10 (23.6% Fibo of the 2017 drop).

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.

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