- The index navigates a tight range around the 95.00 handle.
- Yields of the US 10-year note climb beyond 3.17%.
- Industrial/Manufacturing Production, JOLTs report next on tap.
The US Dollar Index (DXY), which tracks the greenback vs. its main rivals, appears rangebound around the key 95.00 handle on Tuesday.
US Dollar Index looks to geopolitics, data
The index is looking to consolidate in the lower end of the recent range around the 95.00 mark amidst rising US yields, renewed effervescence in the geopolitical front – with the US, Saudi Arabia and Turkey in the centre stage – and alternating risk appetite trends.
In fact, yields of the key US 10-year note are trading on a better mood today and manage to advance to fresh tops in levels just shy of the 3.18% handle.
In addition, US Secretary of State M.Pompeo met Saudi Arabia King Salman for a few minutes but no further details were disclosed, keeping the uncertainty around the event intact.
In the US data space, Industrial and Manufacturing Production are coming up next, seconded by JOLTs Job Openings, the NAHB index and TIC Flows. The usual weekly report on US crude oil supplies by the American Petroleum Institute will close the calendar later on the day.
US Dollar Index relevant levels
As of writing the index is down 0.07% at 95.00 and faces immediate support at 94.95 (low Oct.12) seconded by 94.88 (100-day SMA) and then 94.20 (38.2% Fibo of the 2017-2018 drop). On the upside, a breakout of 95.44 (10-day SMA) would target 96.16 (high Oct.9) en route to 96.98 (2018 high Aug.13).
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