US Dollar tumbles to lows near 93.15 ahead of US data

• The index lost upside momentum and slips back to 93.15.
• US 10-year yields appear sidelined around 3.07%.
• US Industrial/Manufacturing Production, housing sector results next on tap.

The greenback, in terms of the US Dollar Index (DXY), has receded to the 93.15 area after yesterday’s fresh 2018 tops at 93.45.

US Dollar looks to yields, data

The index gathered extra steam as of later following the positive performance of yields of the US 10-year note, which clinched fresh highs just below the 3.10% level on Tuesday, area last visited in July 2011.

After two consecutive daily advances, the buck is facing some selling pressure today along with a correction lower in US yields towards the 3.07/06%. In addition, USD/JPY is also coming down after testing fresh multi-month peaks on Tuesday around the mid-110.00s.

In the US, Industrial and Manufacturing Production figures are due next along with Housing Starts and Building Permits and the speech by Atlanta Fed R.Bostic (voter, centrist).

US Dollar relevant levels

As of writing the index is losing 0.07% at 93.20 and a breakdown of 92.82 (10-day sma) would aim for 92.45 (23.6% Fibo of 89.23-93.45) and finally 92.24 (low May 13). On the other hand, the next resistance at 93.45 (2018 high May 15) followed by 94.22 (high Dec.11 2017) and then 94.27 (high Oct.5 2017).