US Dollar retreats from tops, still above 96.00

The US Dollar Index – which gauges the buck vs. its main rivals – keeps the positive tone well and sound so far today above the 96.00 handle.

US Dollar offered post-data

The index keeps correcting lower after the daily bull run seems to have stalled in the vicinity of the 96.30 area, reaching fresh multi-day peaks at the same time.

USD eased further after poor results in the US docket today saw factory orders contracting more than initially estimated during May, 0.8%. Traders, however, stayed apathetic following the release in light of the more relevant FOMC minutes due later in the European evening.

Prior surveys expect the Committee to deliver a somewhat hawkish message today, while market participants should stay wary of any considerations regarding the Fed’s plans to start shrinking its balance sheet as well as the perspectives for further normalization of the monetary conditions in the second half of the year.

US Dollar relevant levels

The index is up 0.10% at 96.09 and a break above 96.25 (high Jul.5) would target 96.32 (high Jun.28) and then 96.69 (21-day sma). On the flip side, the next support aligns at 95.22 (2017 low Jun.30) followed by 94.95 (low Sep.22 2016) and finally 94.05 (low Aug.18 2016).