- DXY trades around the 103.00 zone on Tuesday as bulls attempt to extend Friday’s recovery.
- Sentiment was lifted after US Trade Representative Greer noted ongoing tariff talks with around 50 countries.
- Key resistance for the US Dollar Index aligns near 103.70 with downside support forming close to 102.70.
The US Dollar Index (DXY), which tracks the performance of the US Dollar against six major currencies, is trading near the 103.00 region during Tuesday’s session. Momentum picked up after upbeat labor market data last week, helping the index rebound from recent lows. Investors welcomed remarks from US Trade Representative (USTR) Jamieson Greer, who told the Senate Finance Committee that the US is engaged in tariff discussions with nearly 50 countries.
However, selling pressure resumed after the US confirmed additional tariffs to go into effect on April 9 against China.
Daily digest market movers: US Dollar sees choppy session on trade dialogue
- USTR Greer told lawmakers that the US is actively working with dozens of countries on tariff negotiations despite US tariffs expected to begin imminently.
- Optimism over trade momentum and hints at market access expansion for agriculture supported sentiment, although no clear timeline was offered.
- Despite engagement from several trading partners, Greer noted China remains resistant to negotiations, widening the rift between Washington and Beijing.
- In line with that, Trump Press Secretary Karoline Leavitt said as retaliation for China's applying 34% duties on US exports the US would add another 50% tariff to Chinese goods.
- Treasury Secretary Scott Bessent confirmed that President Trump will directly participate in future talks, while European Commission President von der Leyen warned of potential retaliation if no resolution is reached.
Technical analysis
The US Dollar Index remains within a narrow range near 103.00, reflecting cautious market behavior. The Moving Average Convergence Divergence (MACD) shows a buy signal, while the Relative Strength Index (RSI) at 41.87 and Bull Bear Power at -0.98 reflect a neutral stance.
Despite this, bearish signals persist from the 20-day, 100-day, and 200-day Simple Moving Averages (SMA) all pointing lower. Similarly, the 10-day Exponential Moving Average (EMA) and SMA reinforce the downward tilt.
Key resistance levels to watch include 103.48, 103.66 and 103.71, while immediate support stands at 102.73. A daily close above 103.18 remains crucial for bulls to regain control.
US-China Trade War FAQs
Generally speaking, a trade war is an economic conflict between two or more countries due to extreme protectionism on one end. It implies the creation of trade barriers, such as tariffs, which result in counter-barriers, escalating import costs, and hence the cost of living.
An economic conflict between the United States (US) and China began early in 2018, when President Donald Trump set trade barriers on China, claiming unfair commercial practices and intellectual property theft from the Asian giant. China took retaliatory action, imposing tariffs on multiple US goods, such as automobiles and soybeans. Tensions escalated until the two countries signed the US-China Phase One trade deal in January 2020. The agreement required structural reforms and other changes to China’s economic and trade regime and pretended to restore stability and trust between the two nations. However, the Coronavirus pandemic took the focus out of the conflict. Yet, it is worth mentioning that President Joe Biden, who took office after Trump, kept tariffs in place and even added some additional levies.
The return of Donald Trump to the White House as the 47th US President has sparked a fresh wave of tensions between the two countries. During the 2024 election campaign, Trump pledged to impose 60% tariffs on China once he returned to office, which he did on January 20, 2025. With Trump back, the US-China trade war is meant to resume where it was left, with tit-for-tat policies affecting the global economic landscape amid disruptions in global supply chains, resulting in a reduction in spending, particularly investment, and directly feeding into the Consumer Price Index inflation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold pulls back from record highs of $3,500
Gold price retreats from $3,500, new all-time high, in the European session on Tuesday as buyers pause for a breather amid overbought conditions on short-term charts. Any meaningful corrective downfall, however, still seems elusive on persistent US Dollar downtrend.
EUR/USD battles 1.1500 as US Dollar looks to stabilize
EUR/USD is battling 1.1500 in the European session on Tuesday. The pair loses traction as the US Dollar finds its feet even as investors remain wary of the US financial stability amid Trump's attacks on Fed Chair Powell. Speeches from ECB and Fed officials are on the radar.
GBP/USD reverses below 1.3400 as US Dollar pauses decline
GBP/USD is back below the 1.3400 mark in the European trading hours on Tuesday, feeling the heat from the pause in the US Dollar decline. But the pair's further dowside appears limited as fears of a US economic slowdown and concerns about the Fed's independence will continue to remain a headwind for the Greenback.
3% of Bitcoin supply in control of firms with BTC on balance sheets: The good, bad and ugly
Bitcoin disappointed traders with lackluster performance in 2025, hitting the $100,000 milestone and consolidating under the milestone thereafter. Bitcoin rallied past $88,000 early on Monday, the dominant token eyes the $90,000 level.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.