US Dollar sidelined around 101.30, US data eyed

The greenback – gauged by the US Dollar Index (DXY) – is trading almost unchanged on Tuesday around the 101.30 region ahead of the upcoming US docket.

US Dollar focus on data

The index has managed to revert yesterdays pullback after buyers turned up at the significant support zone in the 100.70/60 band and prompted USD to retake the 101.00 handle and climb as high as 101.60, just to surrender some pips afterwards.

The underlying bullish bias around the buck remains unchanged for the time being, sustained by the potential move by the Federal Reserve by year-end (practically priced in by markets) and expectations of higher inflation derived from looser fiscal policy under the Trump’s administration.

Quite interesting day in the US data space today, as advanced Q3 GDP figures are due, seconded by Consumer Confidence tracked by the Conference Board, the S&P Case-Shiller index, PCE during Q3 and speeches by NY Fed W.Dudley (permanent voter, neutral) and J.Powell (permanent voter, neutral).

Additionally, USD longs have climbed to the highest level since the summer 2015 above 72K contracts, while net longs have increased to 3-week tops during the week ended on November 22 and according to the latest CFTC report.

US Dollar relevant levels

The index is down 0.01% at 101.32 and a breakdown of 100.64 (low Nov.25) would open the door to 99.38 (low Nov.14) and finally 99.84 (20-day sma). On the other hand, the next hurdle lines up at 102.19 (monthly high Apr.2003) ahead of 102.68 (monthly high March 2003).