US Dollar sinks to daily lows near 96.00

The US Dollar Index, which gauges the buck vs. its major rivals, is rapidly losing ground to session lows in the 96.00 neighbourhood.

US Dollar in 2-day lows

The index is retracing its earlier advance to the mid-96.00s as sentiment in the risk-associated space continues to swell.

In addition, mixed results in the US calendar showed Wholesale Inventories rising 0.3% MoM in June while the Economic Optimism index tracked by IBD/TIPP surpassed expectations at 48.4. Previously, advanced Q2 Unit Labor Costs rose 2.0% and Non-farm Productivity has contracted 0.5%.

Collaborating with the downside in the index, yields of the US 10-year benchmark have dropped to session lows around 1.57%.

US Dollar relevant levels

The index is losing 0.29% at 96.12 facing the immediate support at 95.13 (100-day sma) followed by 94.94 (low Aug.2) and then 94.03 (up trend off 2016 low at 91.88). On the other hand, a break above 96.50 (high Aug.5) would open the door to 96.62 (200-day sma) and finally 97.05 (78.6% Fibo of July-August drop).