US Dollar trims gains, back near 94.60 ahead of ISM, Fed
- The index lost momentum around 94.70 on Wednesday.
- US 10-year yields gyrate around 2.98%, session tops.
- US ISM manufacturing next of relevance ahead of FOMC meeting.
The US Dollar Index (DXY), which gauges the greenback vs. its main competitors, is looking to extend the recent rebound although it met a tough resistance in the 94.70 region.
US Dollar looks to ISM, FOMC
The index advances for the second session in a row on Wednesday, reverting the negative start of the week after bottoming out in the area of the key short-term support line, today at 94.25.
The constructive bias around the buck should persist as long as the short-term support line holds, although the index need to regain recent peaks at 94.90 in order to reassert the upside pressure.
The greenback has been deriving buying interest after another round of the US-China trade effervescence, all following news citing the White House could raise tariffs from 10% to 25% on US imports from China worth $200 billion.
Later in the day, the buck should be in centre stage, as the manufacturing gauge published by the ISM is due followed by the FOMC meeting. Recall that market consensus sees the Fed keeping its rates in the 1.75%-2.00% range this time.
US Dollar relevant levels
As of writing the index is up 0.06% at 94.60 and a breakout of 94.91 (high Jul.27) would target 95.53 (high Jun.28) en route to 95.65 (2018 high Jul.19). On the other hand, immediate contention emerges at 94.25 (short-term support line) seconded by 94.08 (low Jul.26) and finally 93.71 (monthly low Jul.9).