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  • DXY gyrates around the 97.40 region following US data.
  • US Core PCE rose 0.1% MoM and 1.0% YoY in May.
  • Personal Spending expanded 8.2% MoM during last month.

The US Dollar Index (DXY), which tracks the greenback vs. a bundle of its main competitors, keeps the 97.40 region following US data results on Friday.

US Dollar Index unchanged near 97.40

The index has paid little attention to the results from the US docket, maintaining the trade around the mid-97.00s region on Friday.

In fact, the dollar kept the composure after US inflation figures measured by the Core PCE rose at a monthly 0.1% and 1.0% over the last twelve months. Additional data saw Personal Income contracting 4.2% on a monthly basis in May and Personal Spending expanding 8.2% inter-month.

In the meantime, the dollar remains on track to close the first week with losses following two consecutive advances, with clear resistance in the 97.90 region, area coincident with a Fibo level of the 2017-2018 decline.

Later in the session, the final print of the Consumer Sentiment for the current month will close the docket seconded by the weekly oil-rig count by driller Baker Hughes.

What to look for around USD

The re-emergence of the risk aversion in response to COVID-19 developments and trade jitters have lent extra support to the dollar in the last couple of sessions. In the meantime, price action around the buck is expected to track the performance of the broad risk appetite trends, US-China trade developments and the (lack of) progress of the re-opening of the economy. On the constructive stance around the buck, bouts of risk aversion should support the investors’ preference for the greenback as a safe haven along with its status of global reserve currency and store of value.

US Dollar Index relevant levels

At the moment, the index is up 0.04% at 97.43 and a break above 97.74 (weekly high Jun.22) would aim for 97.87 (61.8% Fibo of the 2017-2018 drop) and finally 98.36 (200-day SMA). On the flip side, immediate contention is located at 96.39 (weekly low Jun.23) seconded by 96.03 (50% Fibo of the 2017-2018 drop) and finally 95.72 (monthly low Jun.10).