Dollar Up, Above 100-Mark Ahead of U.S. Inflation Data

Dollar Up, Above 100-Mark Ahead of U.S. Inflation Data

U.S. Dollar Index

DOLLAR INDEX is trading up 0.17% at 100.143

The dollar was up on Tuesday morning in Asia, climbing back above the 100 mark. The U.S. currency was supported by high yields ahead of inflation data due later in the day, which also heightened expectations of tighter monetary policy.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.13% to 100.055 by 11:47 PM ET (3:47 AM GMT). The index tested a near two-year high of 100.19 that it hit during the previous week.

The AUD/USD pair inched up 0.09% to 0.7426 and the NZD/USD pair inched up 0.01% to 0.6825.

The USD/CNY pair was steady at 6.3702. The dollar gained overnight on the offshore Chinese yuan, hitting a two-week high of 6.390 in early Asian trading.

The GBP/USD pair inched down 0.04% to 1.3024.

The dollar also continued its gains against the yen and was very near the overnight intraday high of 125.77 and a June 2015 high of 125.86. Although Japanese Finance Minister Shunichi Suzuki on Tuesday declined to comment on specific prices in foreign exchange markets, he said excess volatility and disorderly movements could have an adverse effect on the economy and financial stability.

On technical fronts DOLLAR INDEX RSI stood at 68.31 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : DOLLAR INDEX – BUY: 100.10, TARGET: 100.17, STOP LOSS : 100.04

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