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US Dollar Index Finds Support Near 92.20

  • DXY remains mired in negative territory.
  • US retail sales expanded less than estimated in October.
  • US industrial production surprised to the upside last month.

The stance offered by the dollar remains well in place for another session and drags the US Dollar Index (DXY) to fresh multi-day lows near 92.20 on Tuesday.

The US dollar index is affected by risk appetite

The downward bias remains unchanged around the dollar despite concerns about the relentless advance of the pandemic persisting along with increasing and tighter restriction measures implemented by many countries to curb the rapid spread of the coronavirus.

The greenback, however, appears on offer as investors continue to favor the “glass half full” vision, always backed by growing hopes that an effective coronavirus vaccine can be delivered sooner rather than later along with a fit economic rebound. of “V”.

Earlier in the session, US retail sales rose less than estimated over the past month, while additional data showed that industrial production and manufacturing production expanded 1.1% and 1.0%, respectively, over on a monthly basis. The additional data caused capacity utilization to increase to 72.8%.

Later, Business Inventories, TIC Flows and the NAHB Index will close the economic calendar ahead of speeches by R.Bostic of the Atlanta Fed (2021 voter, centrist), M.Daly of the San Francisco Fed (2021 voter, centrist) and J. Williams of the New York Fed (permanent voter, centrist).

What to look for around USD

The DXY remains offered and leaves the door open for further declines in the short term. Meanwhile, the dollar remains focused on the post-election scenario and the outlook for the US economy under the Biden administration. From a more macro point of view, the impact of the second wave of the pandemic on the global economy could favor the occasional resurgence of risk aversion and thus lend some support to the dollar, while further progress with on COVID-19 vaccines should support momentum in the risk space. The Fed’s “Longer Low” stance is expected to continue to limit a potential dollar rise.

Technical levels

Right now, the index is shedding 0.29% to 92.37 and faces immediate containment at 92.13 (monthly low on Nov 9) followed by 91.92 (23.6% Fibonacci from the 2017-2018 drop) and then 91.80 (May monthly low). 2018). On the other hand, a breakout of 93.20 (November 11 weekly high) would open the door to 93.76 (100-day SMA) and finally 94.30 (November 4 monthly high).

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