US Dollar looks to regain 95.00 post-data

The greenback, tracked by the US Dollar Index, is now extending its daily rebound to the 95.00 neighbourhood.

US Dollar supported at 94.40

After posting fresh 2-month lows in the 94.40 area, the index seems to have found some buyers and is currently approaching the key barrier at 95.00 the figure.

USD has gathered some traction following mixed results from today’s US docket, where the most relevant CPI figures have come in below expectations, although Core CPI stayed above Fed mandate for the ninth month in a row.

Other results saw Industrial Production, Manufacturing Production and Capacity Utilization all surpassing prior surveys. In the US housing sector, Building Permits contracted 0.1% vs. a forecasted gain of 0.6%, while Housing Starts surprised to the upside, up 2.1% or more than 1.2M units during last month.

Adding to the bounce, NY Fed’s W.Dudley said a rate hike next month is still ‘possible’, while he added that Fed Funds Futures markets are underpricing rate hikes.

US Dollar relevant levels

The index is losing 0.62% at 95.03 and a breakdown of 94.26 (up trend off 2016 low at 91.88) would open the door to 93.41 (low Jun.8) and then 93.03 (low Jun.23). On the other hand, the initial hurdle aligns at 96.50 (high Aug.5) followed by 97.05 (78.6% Fibo of July-August drop) and finally 97.62 (high Jul.25).