US Dollar Index bounces off 94.40 on data

• The decline in the index finds support near 94.40.
• US 10-year yields climb to session highs near 2.89%.
• CB’s Consumer Confidence came in above estimates.

The US Dollar Index (DXY), which measures the buck vs. a basket of its main competitors, remains well entrenched into the negative territory albeit it seems to have found some contention around 94.45/40.

US Dollar index rebounds from 94.45

After bottoming out in the proximity of 94.40, the index managed to regain some upside traction in response to better-than-expected results from the US calendar.

In fact, the key US Consumer Confidence tracked by the Conference Board surpassed estimates at 133.4 for the currency month (vs. 126.7 forecasted) and it also improved July’s 127.9.

Earlier in the day, house prices measured by the S&P/Case-Shiller index expanded at a non-seasonally-adjusted 6.3% YoY vs. a 6.5% expansion forecasted.

The greenback, in the meantime, continues to suffer the better tone in the riskier assets as well as alleviated concerns over a US-China trade war. In particular, the recent US-Mexico deal clinched on Monday has been also collaborating with the diminishing concerns on the trade front.

US Dollar relevant levels

As of writing the index is losing 0.16% at 94.62 and a break below 94.43 (low Aug.28) would aim for 94.20 (38.2% Fibo of the 2017-2018 drop) and finally 94.08 (low Jul.26). On the other hand, the next up barrier aligns at 95.52 (21-day SMA) seconded by 95.60 (10-day sma) and finally 95.71 (high Aug.23).