- The index finds support in the 94.70/65 band.
- US Industrial Production contracted 0.1% MoM.
- US flash Consumer Sentiment surprised to the upside at 99.3.
The greenback, in terms of the US Dollar Index (DXY), remains on the defensive so far today albeit it managed to rebound from daily lows in the 94.70/65 band.
US Dollar recedes from YTD tops
After clinching fresh 2018 peaks in the 95.10/15 band during early trade, the index sparked a correction lower on the back of renewed jitters on the US-China trade conflicts.
The buck faded part of the initial optimism after the dovish tone from the ECB at yesterday’s meeting originated a wave of selling impetus around the single currency and dragged EUR/USD down around 3 cents from tops seen in the previous session.
DXY stays so far in the red territory despite the NY Empire State index and the flash reading of Consumer Sentiment both came in above expectations. On the not-so-bright side, Industrial Production contracted 0.1% inter-month in May.
US Dollar relevant levels
As of writing the index is losing 0.18% at 94.75 and a breach of 93.97 (21-day sma) would open the door to 93.92 (10-day sma) and then 93.21 (low Jun.6). On the other hand, the next hurdle emerges at 95.14 (2018 high Jun.15) seconded by 95.15 (high Nov.6 2017) and finally 96.51 (high Jul.4 2017).
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