- The index dropped to and recovered from the 94.80 region.
- US 10-year yields keep the daily range around 3.17%.
- US Industrial Production expanded more than expected in September.
The greenback, in terms of the US Dollar Index (DXY), is now looking to retake the area above the 95.00 handle after bottoming out in the boundaries of 94.80.
US Dollar Index supported near 94.80
Despite the ongoing rebound, the index remains under pressure and is prolonging the bearish note during the first half of the week amidst alternating risk trends and uncertainty around the disappearance of Washington Post’s journalist J.Khashoggi earlier in the month.
The recent leg lower in DXY comes along a correction in yields of the key US 10-year note from multi-year tops beyond 3.25% to last week’s lows around 3.13%.
In the US data space, Industrial Production expanded at a monthly 0.3% in September, bettering estimates. Manufacturing Production rose in line with consensus at 0.2% MoM. Further data saw the NAHB index at 68 for the current month, while JOLTs Job Openings rose to a record 7.136 million during August.
US Dollar Index relevant levels
As of writing the index is down 0.06% at 95.02 and faces immediate support at 94.79 (low Oct.12) seconded by 94.20 (38.2% Fibo of the 2017-2018 drop) and finally 93.81 (low Sep.21). 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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