US Dollar upside stalled near 93.70

The strong rebound in the greenback seems to have found a strong hurdle around 93.70 when measured by the US Dollar Index (DXY).

US Dollar bid on USTs

The sudden bounce in yields of the US 10-year reference to levels above 2.34% has given extra oxygen to the buck, lifting the index to fresh daily tops near 93.70.

In addition, better-than-expected US factory orders during August also collaborated with the renewed up move in the greenback. In fact, orders expanded at a monthly 1.2%, while Core orders expanded 0.4% MoM. Earlier in the session, initial claims rose to 260K WoW, also coming in above prior surveys.

Further out, San Francisco Fed J.Williams noted inflation is heading towards the 2% target, adding at the same time that the economy does not need more inflation for the Fed to hike rates.

US Dollar relevant levels

As of writing the index is gaining 0.30% at 93.59 facing the initial hurdle at 93.91 (high Oct.2) followed by 94.03 (23.6% Fibo of the 2017 drop) and finally 94.14 (high Aug.16). On the downside, a break below 93.15 (10-day sma) would open the door to 92.94 (55-day sma) and then 92.47 (low Sep.20).