US Dollar drops to lows near 92.40

The selling pressure is now gathering steam around the greenback, forcing the US Dollar Index to drop to the area of session lows in the 92.40/35 band.

US Dollar weaker on data, Fedspeak

The index intensified the downside after US factory orders contracted more than expected 3.3% during July, while orders excluding the Transportation sector expanded 0.5% inter-month.

Adding to the selling bias, FOMC’s permanent voter and dovish member L.Brainard advocated for a gradual pace of tightening by the Federal Reserve in her comments earlier in the session.

In the same direction, yields of the key US 10-year reference have eroded the initial upside to the 2.15% and are now testing lows in sub-2.10% levels, trading at shouting distance from YTD lows seen last week.

Later in the session, Dallas Fed R.Kaplan (voter, hawkish) and Minneapolis Fed N.Kashkari (voter, dovish) are due to speak.

US Dollar relevant levels

As of writing the index is retreating 0.22% at 92.37 and a break below 92.10 (low Sep.1) would target 91.62 (2017 low Aug.29) en route to 91.51 (low Jan.15 2015). On the upside, the next hurdle is located at 92.71 (10-day sma) seconded by 93.11 (21-day sma) and finally 93.35 (high Aug.31).