US Dollar bounces off lows, around 93.70
- DXY finds support near 93.40.
- USD apathetic despite positive US CPI.
- Probability of a rate hike in December at 91%.
The US Dollar Index (DXY), which tracks the greenback vs. its main rival currencies, has managed to leave behind the area of recent lows and is now looking to regain the 93.70/75 band.
US Dollar supported near 93.40
After bottoming out in the vicinity of 93.40, the index seems to have found some buying interest and is now hovering near 93.60.
Positive results from the US docket saw core CPI and advanced headline retail sales coming in above expectations for the month of October, while the NY Empire State manufacturing index disappointed initial forecasts.
Additional auspicious data showed business inventories coming in flat in September vs. a forecasted 0.1% expansion and August’s 0.6% raise.
In the meantime, USD remains fragile amidst heightened scepticism over the progress of the Trump-sponsored tax reform. In this regard, House Republican is expected to vote its bill tomorrow, while speculations keep pointing to its implementation at some point by year-end.
US Dollar relevant levels
As of writing the index is losing 0.07% at 93.75 and a breakdown of 93.40 (low Nov.15) would aim for 93.33 (55-day sma) and finally 93.06 (low Oct.19). On the upside, the immediate resistance aligns at 94.29 (21-day sma) seconded by 94.50 (10-day sma) and then 95.15 (high Nov.7).