US Dollar pushes higher above 89.00 on U-Mich
- US consumer sentiment beats estimates.
- DXY tested 89.00 and beyond.
- US yields drop to 2.86%.
The greenback, in terms of the US Dollar Index (DXY), is now extending the daily rebound and is now gyrating around the 89.00 handle.
US Dollar bid on data
The index grabbed buying interest after bottoming out in multi-year lows in the 88.30/20 band.
Subsequently, auspicious results from the US housing sector added extra oxygen to the correction higher while a better-than-expected Reuters/Michigan index is also collaborating with the upside.
In fact, preliminary figures for the current month now expect US consumer sentiment to improve to 99.9 from January’s 95.7. In addition, consumer expectations are seen at 90.2 and current conditions at 115.1, all readings coming in above initial expectations.
The up move in the buck is coming in on a different direction from the performance of yields in the US 10-year note, which are now hovering over daily lows around 2.86%.
US Dollar relevant levels
As of writing the index is gaining 0.47% at 88.96 and a break above 89.57 (21-day sma) would aim for 89.61 (10-day sma) and then 90.57 (high Feb.8). On the other hand, the initial support lines up at 88.26 (2018 low Feb.16) seconded by 88.13 (200-month sma) and finally 86.85 (support line off 72.70).