US Dollar tumbles below 93.00, daily lows
- The index lost upside momentum and drops to lows near 92.90.
- Yields of the US 10-year note tread water above 3.0%.
- US Producer Prices came in on the soft side during April.
Gauged by the US Dollar Index (DXY), the buck is now looking to rebound from daily lows in the 92.90/85 band.
US Dollar upside stalled near 92.50
After climbing as high as the boundaries of 93.50, levels last traded in December 2017, sellers appear to have returned to the markets and dragged the index to session lows in the 92.90/85 band.
In addition, disappointing figures from US Producer Prices during April have also collaborated with the selling sentiment around the buck.
It is worth recalling that US Producer Prices rose below expectations 2.6% YoY and 0.1% inter-month. Prices excluding Food and Energy costs rose 0.2% MoM and 2.3% over the last twelve months.
In the meantime, the recent upside in USD seems to be taking a breather following the recent developments around the much-talked US withdrawal from the Iran nuclear deal and the strong gains seen in past session, which could have sparked some profit-taking mood today.
Later in the session, the EIA will publish its weekly report on US crude oil inventories ahead of the speech by Atlanta Fed R.Bostic (voter, centrist).
US Dollar relevant levels
As of writing the index is retreating 0.12% at 92.97 and a breakdown of 92.52 (61.8% Fibo of 95.15-88.25) would aim for 92.39 (10-day sma) and finally 91.96 (200-day sma). On the flip side, the initial hurdle emerges at 93.42 (2018 high May 9) would open the door to 93.68 (78.6% Fibo of 95.15-88.25) and then 94.22 (high Dec.12 2017).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
