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  • The index moves back above the 94.00 handle.
  • Yields of the US 10-year note drop to test 2.82%.
  • US Core CPI, Personal Spending came in above estimates.

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, has managed to bounce off session lows and regains the 94.00 barrier and above so far.

US Dollar looks to extend the rebound

After bottoming out in the 93.80/70 band during early trade, the index managed to attract some buying attention and is now moved beyond 94.00 the figure as the risk-associated complex is facing some renewed selling pressure.

USD also found support in better-than-expected results from April’s PCE, Personal Spending and weekly Initial Claims. Other releases in saw Pending Home Sales dropping 1.3% MoM during the same period and the Chicago PMI at 62.7 in May, surpassing consensus.

The index now alternates gains vs. losses in the 94.00 neighbourhood, looking to revert yesterday’s sharp retracement following Tuesday’s multi-month peaks just above 95.00 the figure, all ahead of tomorrow’s critical Non-farm Payrolls figures for the month of May.

US Dollar relevant levels

As of writing the index is losing 0.05% at 94.06 and a breakdown 93.71 (low May 31) would open the door to 93.64 (23.6% Fibo of the April-June up move) and finally 93.41 (21-day sma). On the upside, the next up barrier aligns at 93.98 (10-day sma) seconded by 95.01 (2018 high May 29) and finally 95.15 (monthly highs Oct/Nov. 2017).