Published on May 8, 2023

Daily Analysis For US Doller Index 08-05-2023

US Doller Index Analysis

Economic Events and Scenario for US Doller Index

Economic Events : -

GMT	Event	Impact	Currency
00:50	(Japan) BoJ Monetary Policy Meeting Minutes	Medium	JPY
01:00	(France) Victory in Europe Day	None	EUR
01:00	(United Kingdom) Bank Holiday for the coronation of King Charles III	None	GBP
01:30	(Japan) Jibun Bank Services PMI	Medium	JPY
01:30	(Japan) Jibun Bank Composite PMI	Low	JPY
02:30	(Australia) Building Permits MoM	Medium	AUD
02:30	(Australia) Private House Approvals MoM	Low	AUD
02:30	(Australia) Building Permits YoY	Low	AUD
02:30	(Australia) NAB Business Confidence	High	AUD
06:00	(Estonia) Inflation Rate YoY	Low	EUR
06:00	(Estonia) Inflation Rate MoM	Low	EUR
06:00	(Estonia) CPI	Low	EUR
07:00	(Finland) Balance of Trade	Low	EUR
07:00	(Germany) Industrial Production MoM	Medium	EUR
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
10:00	(Greece) Balance of Trade	Low	EUR
10:30	(Germany) 3-Month Bubill Auction	Low	EUR
11:00	(Spain) Consumer Confidence	Medium	EUR
11:00	(Latvia) Industrial Production MoM	Low	EUR
11:00	(Latvia) Industrial Production YoY	Low	EUR
15:00	(El Salvador) Inflation Rate YoY	Low	USD
15:00	(El Salvador) Inflation Rate MoM	Low	USD
15:00	(United States) Wholesale Inventories MoM	Low	USD
16:00	(United States) Consumer Inflation Expectations	Low	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
23:45	(New Zealand) Electronic Retail Card Spending MoM	Low	NZD
23:45	(New Zealand) Electronic Retail Card Spending YoY	Low	NZD

Today's Scenario: - The US Dollar Index (DXY) has rebounded from a key short-term support level and is currently consolidating losses made over the past two weeks, trading around 101.35 early Monday in Asia. The recent hawkish Fedspeak has boosted the DXY, challenging market sentiment. The cautious mood ahead of this week's US inflation data and a survey report on the US banking lending practices and current conditions is also supporting the DXY buyers. However, the DXY failed to capitalize on the upbeat US employment report for Friday, as higher prints of Nonfarm Payrolls (NFP) failed to distract the market from downwardly revised prior readings. The US Bureau of Labor Statistics (BLS) reported a jump in the headline Nonfarm Payrolls (NFP) in April, but prior readings were revised down. The Unemployment Rate eased to 3.4%, and Average Hourly Earnings improved to 4.4% YoY.

Buy Scenario: - If the USD Index manages to sustain a trade above the first resistance level (R1) at $101.353, it would indicate that buying pressure is increasing. In this case, the next resistance levels at $101.797 (R2) and $102.185 (R3) would be the next targets.

However, if the USD Index sustains a move below the first resistance level (R1) at $101.353, it would signal the presence of sellers. If this creates enough downside momentum, the USD Index could accelerate towards the support cluster at $100.520 - $100.345. Till we do not advise to buy US Dollar Index.

Sell Scenario: - The USD Index is currently in a downtrend, which started last week when it broke below the level of $100.740. The market's reaction to the key resistance level at $101.353 will be crucial in setting the tone for Monday's trading session. Till we do not advise to sell in US Dollar Index

Support and Resistance Level: -