US Dollar clinches peaks near 94.80, attention to Powell

• The index reverted the initial drop and leapt to 94.80.
• US 10-year yields stay choppy around 2.86%.
• US Industrial/Manufacturing Production expanded more than estimated.
• Fed’s Powell testify before the Senate banking Committee.

The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main rivals, stays in the upper end of the daily range in the 94.70/80 region, returning at the same time to the positive territory for the day.

US Dollar looks to Powell, up on data

Fresh USD buyers stepped in around session lows in the 94.30 region, pushing the index to the boundaries of the 94.80 level, or new daily highs.

DXY also picked up extra traction after US Industrial Production and Manufacturing Production expanded more than expected in June, up 0.6% and 0.8%, respectively. On the flip side, Capacity Utilization expanded to 78.0% during last month, a tad below estimates albeit up from May’s reading.

In the meantime, the buck remains apathetic to Powell’s semi-annual testimony, where he reiterated the Fed’s gradual stance regarding rate hikes, ‘roughly balanced’ risks and stronger growth in Q2.

US Dollar relevant levels

As of writing the index is up 0.29% at 94.79 facing the next resistance at 95.24 (high Jul.23) seconded by 95.25 (200-week sma) and finally 95.53 (2018 high Jun.21). On the downside, a breach of 94.35 (low Jul.17) would target 94.04 (23.6% Fibo of the April-June up move) en route to 93.71 (low Jul.9).