US Dollar toying with tops near 93.50

The greenback, in terms of the US Dollar Index, is extending the upside vs. its main rival currencies today, now printing fresh daily highs near 93.50.

US Dollar in weekly highs

The upbeat sentiment around the buck stays unabated during the first half of the week, now lifting DXY to multi-day tops in the mid-93.00s and always backed by the healthy up move in US yields.

In fact, after testing daily tops around 2.33%, yields of the US 10-year reference have now shed around a bp, although they keep the positive momentum intact for the time being.

In the data space, both industrial and manufacturing production came in in line with expectations, expanding 0.3% MoM and 0.1% MoM, respectively. Further data saw the NAHB index surpassing estimates at 68 for the current month, while capacity utilization expanded a tad to 76.0% in September from 75.8%. Earlier in the session, export and import prices rose at a monthly 0.8% and 0.7%, respectively.

Furthermore around the buck, Dallas Fed R.Kaplan (voter, hawkish) argued that some progress in inflation is likely amidst a tight labour market, adding at the same time that fiscal policy and structural changes may provide upside.

US Dollar relevant levels

As of writing the index is gaining 0.44% at 93.46 and a break above 94.03 (23.6% Fibo of the 2017 drop) would expose 94.27 (high Oct.6) and finally 95.90 (38.2% Fibo of the 2017 drop). On the downside, the immediate support lines up at 93.10 (21-day sma) seconded by 92.92 (55-day sma) and then 92.75 (low Oct.13).