- The index loses further momentum and tests 95.00 and below.
- US Retail Sales came in at 0.1% MoM in September, below estimates.
- The NY Empire State index surpassed consensus at 21.10.
Tracked by the US Dollar Index (DXY), the greenback remains depressed on Monday and is now hovering over the 95.00 area.
US Dollar Index in multi-day lows
The index is approaching the key support area around the 21- and 100-day SMA at 94.98 and 94.88 respectively as sentiment around the buck keeps deteriorating so far.
In addition, US headline Retail Sales expanded at a monthly 0.1% during September, missing initial forecasts. Core Sales also disappointed, contracting 0.1% inter-month.
On the brighter side, the regional manufacturing gauge tracked by the Empire State index came in at 21.0 for the month of October, surpassing both prior surveys and September’s 19.00.
In the meantime, the risk-off sentiment appears to be gaining ground on the geopolitical front, with Turkey, the US and Saudi Arabia in centre stage following the death of Washington Post’s journalist J.Kashoggi in Turkey.
US Dollar Index levels to watch
As of writing the index is losing 0.18% at 95.09 and faces immediate support at 94.95 (low Oct.12) seconded by 94..43 (low Aug.28) and finally 94.20 (38.2% Fibo retracement of the 2017-2018 drop). On the upside, a breakout of 96.16 (high Oct.9) would open the door to 96.98 (2018 high Aug.13) and finally 97.87 (61.8% Fibo retracement of the 2017-2018 drop).
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