- DXY finds support in the 92.40 region on Tuesday.
- US 10-year yields briefly retest the 1.30% level.
- US consumer confidence stood at 113.8 in August.
The dollar, when measured by the US dollar index (DXY), manages to rebound from multi-week lows initially touched around 92.40.
US dollar index offered by month-end flows, risk appetite
The index exacerbated the Powell-induced sell-off to the 92.40 zone early in the session, levels last seen in early August.
The combination of end-of-month flows with some profit-taking continues to weigh on the dollar in the first half of the week, all amid recalibration of downside expectations by market participants.
Meanwhile, yields on the key 10-year US benchmark managed to revisit the 1.30% level, only to lose control shortly thereafter.
On the US calendar, the ever-relevant Consumer Confidence tracked by the Conference Board was 113.8, disappointing estimates. Also, Chicago’s PMI dropped to 66.8 in the current month.
Technical levels
Now, the index is losing 0.19% at 92.52 and faces the next barrier to the downside at 92.40 (August 31 weekly low) followed by 91.78 (July 30 monthly low) and finally 91.60 (100-day SMA). On the other hand, a breakout above 93.72 (August 20 high) would open the door to 94.00 (round level) and then 94.30 (November 4, 2020 monthly high).
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