US Dollar firmer, looks to retest 96.00

The greenback, tracked by the US Dollar Index, has managed to leave behind the initial weakness and is now approaching session tops in the 96.00 area.

US Dollar ignored poor data

The index remained apathetic despite US Housing Starts and Building Permits have missed expectations during the month of August, coming in at 1.142 million units (vs. 1.190 million expected) and 1.139 million units (vs. 1.170 million expected), respectively.

Later in the NA session, the API’s report on US crude oil stockpiles is due ahead of tomorrow’s EIA report and the key FOMC meeting. Market bets remain firmly on the ‘on hold’ side – 12% probability of a rate hike according to CME Group’s FedWatch tool – although Chair J.Yellen’s press conference could give markets a hint on the future moves by the Committee.

US Dollar relevant levels

The index is gaining 0.09% at 95.93 facing the next resistance at 96.12 (high Sep.16) ahead of 96.25 (high Sep.1) and finally 96.50 (high Aug.5). On the flip side,

a breakdown of 95.45 (20-day sma) would open the door to 94.72 (support line off 2016 low) and then 94.05 (low Aug.18).