US Dollar Index recovery stalled ahead of 95.40
- The rebound in the index run out of legs near 95.40.
- Decent support emerged in daily lows around 94.90.
- US JOLT Job Openings came in at a record high at 6.939M.
The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, has managed to bounce off lows near 94.90 although the recovery run out of legs just ahead of 95.40.
US Dollar Index clings to gains near 95.30
The index managed to leave behind the initial offered bias, finding dip-buyers in the 94.90 region that pushed the buck to the area of session peaks around 95.40, where it lost some impetus.
The better tone in the risk-associated complex plus no significant news on the US-China trade front kept the demand for the buck subdued during early trade, forcing DXY to break below the critical support at 95.00 the figure.
In the US data space, JOLTs Job Openings surpassed forecasts at 6.939 million during July, while Wholesale Inventories expanded at a monthly 0.6% in the same period, also bettering expectations.
Looking ahead, the greenback should remain cautious in light of the ECB and BoE events and the publication of US inflation figures measured by the CPI as well as Producer Prices.
US Dollar Index relevant levels
As of writing the index is gaining 0.07% at 95.23 and a break above 95.74 (high Sep.4) would open the door to 96.04 (50% Fibo of the 2017-2018 drop) and finally 96.96 (2018 high Aug.15). On the other hand, the next support emerges at 94.45 (low Aug.28) seconded by 94.20 (38.2% Fibo of the 2017-2018 drop) and then 94.08 (low Jul.26).