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  • The index opened the session on the defensive, around 95.40.
  • Yields of the US 10-year note climb to daily highs around 3.08%.
  • US ADP report and ISM Non-manufacturing next of relevance.

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, is now trading on a weak note and at the same time is taking a breather from the recent rally.

US Dollar Index looks to risk trends, data

After five consecutive daily advances, including fresh 6-week peaks beyond 95.70 (Tuesday), the index is now trading on a soft fashion in the 95.40/35 band.

Today’s better tone in the risk associated space is forcing the buck to fade part of the recent advance to multi-week peaks, while market participants keep looking to Italy and Brexit for fresh direction of the risk-appetite trends.

Moving forward, the ADP report is coming up next, with consensus expecting the US private sector to have added nearly 190K jobs during last month. In addition, the ISM Non-manufacturing is also due ahead of the weekly report on US crude oil stockpiles by the EIA.

US Dollar Index relevant levels

As of writing the index is losing 0.14% at 95.36 and a breach of 94.80 (21-day SMA) would aim for 93.81 (low Sep.17) and then 93.71 (monthly low Jul.9). On the upside, the next hurdle emerges at 95.74 (monthly high Oct.2) seconded by 96.04 (50% Fibo retracement of the 2017-2018 drop) and finally 96.98 (2018 high Aug.13).