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  • The index tumbles further and challenges the 94.00 handle.
  • Yields of the US 10-year note remain above the 3.10% area.
  • US CB’s Consumer Confidence at 18-year high at 138.4.

The US Dollar Index (DXY), which gauges the buck vs. a basket of its main rivals, remains on the defensive and is now putting the 94.00 support to the test.

US Dollar Index weaker despite upbeat data

The index is charting an ‘inside day’ candle so far today, with gains limited around the 94.40 region in spite of the upbeat results from the US Consumer Confidence, which climbed to 18-year tops at 138.4 for the current month, according to the Conference Board.

Further US data saw the Richmond Fed manufacturing index also on the strong side at 29 in September, while the S&P/Case-Shiller index expanded at a non-seasonally-adjusted 5.9% on a year to July, below previous estimates.

Indecision ahead of the FOMC gathering tomorrow, effervescence on the US-Canada trade front and a generalized better mood surrounding the risk-associated complex is putting the buck under pressure today, albeit the 94.00 area appears to hold well for the time being.

US Dollar Index relevant levels

As of writing the index is losing 0.27% at 94.01 facing the next support at 93.81 (low Sep.21) followed by 93.71 (monthly low Jul.9) and then 93.19 (monthly low Jun.14). On the other hand, a break above 94.46 (10-day SMA) would aim for 95.00 (high Sep.14) and finally 95.04 (55-day SMA).