- The index finds support in the 93.70 region on Monday.
- Yields of the US-10 year reference clinches 2.92%.
- US Factory Orders contracted 0.8% MoM in April.
Measured by the US Dollar Index (DXY), the buck stays on the defensive at the beginning of the week although it managed to rebound from daily lows in the vicinity of 93.70.
US Dollar offered on sentiment, data
The index has started the week on the back footing, reverting Friday’s up move following the release of US labour market data. The strong reading from Payrolls boosted the sentiment around the risk-associated complex, thus undermining the ability of the buck to prolong the upside this week.
Data wise in the US docket, April’s Factory Orders contracted 0.8% inter-month and Durable Goods Orders dropped 1.6% MoM during the same period, both prints coming in below initial estimates.
Renewed uncertainty around the US-China trade talks plus incipient disputes on the US-EU front appears to have undermined the prospects of further upside in the buck, at least in the very near term.
US Dollar relevant levels
As of writing the index is losing 0.33% at 93.88 and a breach of 93.72 (low May 31) would aim for 93.64 (23.6% Fibo of the April-June up move) and then 93.57 (21-day sma). On the other hand, the immediate hurdle is located at 94.45 (high May 31) followed by 95.01 (2018 high May 29) and finally 95.15 (monthly highs Oct/Nov. 2017).
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