US Dollar retreats from highs, hovers over 95.70

The US Dollar Index, which tracks the buck vs. a trade-weighed basket of rival currencies, is now testing the 95.75/80 band after climbing to 95.90 in early trade.

US Dollar muted on data

The index kept the composure after Initial Claims rose to 266K WoW vs. 265K forecasted and a tad lower than the previous week at 267K, taking the 4-Week Average to 262.75K from 259.75K

Furthermore, Export Prices rose 0.2% inter-month in July and Import Prices gained 0.1% MoM, both prints bettering initial estimates.

USD is likely to remain in centre stage in light of tomorrow’s Retail Sales, Business Inventories and the advanced Consumer Sentiment gauge by the Reuters/Michigan index.

US Dollar relevant levels

The index is advancing 0.10% at 95.75 facing the next hurdle at 96.50 (high Aug.5) ahead of 96.61 (200-day sma) and finally 97.05 (78.6% Fibo of July-August drop). On the flip side, a breakdown of 95.38 (low Aug.10) would target 95.13 (100-day sma) and then 94.94 (low Aug.2).