FXStreet (Edinburgh) – The US Dollar Index, which tracks the greenback vs. its main rivals, is advancing further on Tuesday, posting daily highs around the 94.60 area.
US Dollar revitalized post-PBoC
The US dollar picked up further pace earlier in the European morning, after the PBoC cut its lending rate, deposit rate and the bank’s Reserve Requirement Ratio in an attempt to boost the domestic economy, which remains under markets’ scrutiny in light of the recent and persistent sell-off in the stock market.
In addition, the greenback has found extra oxygen after US Consumer Confidence came in at 101.5 for the current month, the highest level since January, eclipsing lower-than-expected results from New Home Sales and Markit’s Services PMI.
US Dollar relevant levels
As of writing the index is up 1.35% at 94.59 facing the immediate resistance at 94.68 (high Aug.25) ahead of 94.96 (high Aug.24) and finally 95.81 (high Aug.21). On the downside, a breach of 92.59 (low Aug.24) would aim for 92.20 (low Jan.21) and then 92.08 (low Jan.16).
(Market News Provided by FXstreet)