US Dollar in session lows around 92.50 ahead of US data

• The index is trading on the defensive today in the mid-92.00s.
• US 10-year yields in a consolidative fashion around 2.97%.
• Busy US docket today, including ISM Non-manufacturing, Trade Balance.

The greenback, in terms of the US Dollar Index (DXY), has receded from recent tops and navigates the mid-92.00s early in the European session.

US Dollar looks to US data

The index is trading in the negative territory after three consecutive daily advances, returning to the 92.50 region after hitting fresh YTD tops beyond 92.80 on Wednesday.

Some profit taking is forcing the buck to recede from recent highs although it remains firm well above the 92.00 milestone for the time being.

Yesterday’s FOMC meeting did not bring in any surprise. In fact, the Committee left unchanged the overnight rates at 1.50%-1.75%, as widely expected, while it now sees US inflation running near the ‘symmetric’ 2% target, allowing for some overshooting.

Later in the session, US Trade Balance figures are due seconded by Factory Orders, Durable Goods Orders, Initial Claims, Markit’s Services PMI and the more relevant ISM Non-manufacturing.

US Dollar relevant levels

As of writing the index is losing 0.16% at 92.61 facing initial contention at 91.96 (200-day sma) seconded by 91.70 (50% Fibo of 95.15-88.25) and finally 91.59 (10-day sma). On the upside, a breakout of 92.83 (2018 high May 2) would open the door to 93.68 (78.6% Fibo of 95.15-88.25) and then 94.22 (high Dec.12 2017).