- The bullish mood in the dollar remains good and solid.
- US 10-year yields fall further and are approaching 1.30%.
- The NAHB index will be published next on the US agenda.
Buying interest around the dollar holds good for another session and pushes the US Dollar Index (DXY) to new highs near 93.50 on Monday.
US Dollar Index Focuses on FOMC Event
The index is trading at levels last seen in late August near the 93.50 level at the beginning of the week, extending the recovery for the third consecutive session.
The risk aversion kicked off on Monday in response to China’s Evergrande nerves and growing fears of contagion to real estate and financial markets, all translating into new wings for the dollar.
In the US bond markets, 10-year yields continue to fall and approach the key level of 1.30%, from last week’s highs above 1.38%.
In the data space, the NAHB index will close for the day along with short-term auctions.
Technical levels
Now the index is gaining 0.08% to 93.32 and a break above 93.45 (September 20 monthly high) would open the door to 93.72 (August 20 high) and then 94.30 (November 4 monthly high). 2020). On the other hand, the next descending barrier emerges at 92.32 (weekly minimum of September 14), followed by 91.94 (monthly minimum of September 3) and finally 91.78 (monthly minimum of July 30).
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