- The index braces new 2018 tops above 93.60.
- US 10-year yields rangebound around 3.07%.
- US Industrial Production expanded more than expected in April.
After a brief test of new 2018 tops above 93.60 earlier in the session, the US Dollar Index (DXY) has now sparked a correction lower to the 93.45/40 band.
US Dollar backed by US yields, data
The index is up for the third session in a row today, climbing as high as the 93.60/65 area and at the same time clinching fresh multi-month tops.
Yields of the key US 10-year reference are trading just below recently recorded multi-year peaks beyond 3.07% and are in turn lending extra oxygen to the rally in the greenback.
In addition, US Industrial Production expanded more than expected 0.7% MoM during April while Manufacturing Production rose at a monthly 0.5%. Additional US data saw Building Permits at 1.352 million units and Housing Starts at 1.287 million.
US Dollar relevant levels
As of writing the index is gaining 0.35% at 93.59 facing the next hurdle at 93.63 (2018 high May 16) followed by 94.22 (high Dec.11 2017) and then 94.27 (high Oct.5 2017). On the other hand, 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).