US Dollar pares initial losses, back near 94.80
- DXY found support in the 94.55/50 band.
- US 10-year yields rebounded beyond 2.34%.
- Attention remains on US tax reform.
After bottoming out in daily lows around 94.50, the US Dollar Index (DXY) rebounded and tested the 94.80 area, where it is now trying to consolidate.
US Dollar focused on US politics
The index seems to have found some dip-buyers around session lows in the boundaries of the 94.50 area, managing to rebound on the back of a better performance in yields of the US 10-year benchmark.
In fact, yields clinched daily tops above the 2.34% level earlier in the session, around 3 bps higher than daily lows.
In the meantime, the buck remains under pressure in light of headlines coming from the US political scenario, where the Republicans-led tax reform plan should take centre stage later in the NA session.
In the US data space, initial claims rose higher than expected on a weekly basis, although they managed to drag the 4-week average to levels last seen in 1973. Further data saw wholesale inventories expanding at a monthly 0.3% in September, matching estimates.
US Dollar relevant levels
As of writing the index is losing 0.27% at 94.63 and a breakdown of 94.41 (low Nov.3) would open the door to 94.15 (21-day sma) and finally 94.03 (23.6% Fibo of the 2017 drop). On the upside, the immediate resistance aligns at 95.15 (high Nov.7) seconded by 95.90 (38.2% Fibo of the 2017 drop) and then 96.63 (200-day sma).