US Dollar within after US data

The US Dollar Index, which tracks the buck vs. its main rivals, is moving higher on Monday, looking to re-visit the 94.00 mark following domestic data releases.

US Dollar bid post-data

The index keeps the buying interest well and sound at the beginning of the week after US advanced manufacturing and services PMIs are expected to rise above expectations for the current month.

On the not-so-bright-side, June’s existing home sales contracted at a monthly 1.8% to 5.52 million units vs. 5.58 million units initially forecasted.

In the meantime, USD manages well to keep the trade on the positive ground so far, bouncing off fresh lows in the 93/60/65 band recorded during overnight trade (levels last seen in early June 2016). US yields are also attempting a tepid rebound along with the index, although still remain in the lower bound of the recent range.

In spite of the ongoing rebound, the greenback remains under pressure following poor results in the US docket as of late and recent Fedspeak advocating for a more gradual approach when comes to tighten the monetary conditions, all playing against any sustained recovery in the demand for the buck.

Additionally, USD speculative net longs remained on the downside during the week ended on July 18, this time retreating to levels last seen in mid-June 2014 according to the latest CFTC report.

US Dollar relevant levels

The index is gaining 0.03% at 93.81 facing the next up barrier at 94.69 (10-day sma) seconded by 94.98 (high Jul.20) and finally 95.32 (21-day sma). On the downside, a break below 93.65 (2017 low Jul.24) would open the door to 93.41 (low Jun.8 2016) and finally 93.03 (low Jun.23 2016).