US Dollar Approaches 94.80 on Data

US Dollar Approaches 94.80 on Data

13 May 2016, 18:40
Roberto Jacobs
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US Dollar Approaches 94.80 on Data

The greenback, tracked by the US Dollar Index, is extending the rally on Friday towards the boundaries of 94.80 on upbeat US data.

US Dollar stronger as data beat consensus

The index is closing its second week in a row with gains, climbing to levels close to the 95.00 handle after the US docket has surprised markets to the upside today.

In fact, headline Retail Sales have expanded 1.3% inter-month during April, while Core sales followed suit, up 0.8% MoM. Further results saw advanced Consumer Sentiment measured by the Reuters/Michigan index at 95.8 for the current month vs. 90.0 expected and Business Inventories gaining 0.4% MoM in March.

USD is thus prolonging the rebound from multi-month lows in the 91.90 area seen earlier in the month, now targeting the 95.00 handle ahead of the FOMC minutes due next week.

US Dollar relevant levels

The index is up 0.56% at 94.68 and a breakout of 95.16 (55-day sma) would aim for 95.21 (high Apr.14) and then 96.42 (high Mar.28). On the flip side, the next support aligns at 94.02 (20-day sma) followed by 91.89 (2016 low May 3) and finally 91.50 (low Jan.15 2015).


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