US Dollar decline halted near 95.50

The greenback, measured by the US Dollar Index, remains on the defensive during the first half of the week, currently testing daily lows in the mid-95.00s.

US Dollar focus on data, Fed

The index is retreating for the second straight session today, retracing further Friday’s spike to peaks above the 96.00 handle as sentiment around the buck seems to be losing momentum rapidly.

Ahead in the session, the US housing sector will take centre stage in light of the releases of August’s Housing Starts and Building Permits, followed by the API’s weekly report on US crude stockpiles.

Looking ahead, the FOMC meeting will be the main event of the week (Wednesday), as recent higher-than-expected US CPI figures (Friday) have lent extra support to the case of a potential rate hike tomorrow.

US Dollar relevant levels

The index is retreating 0.16% at 95.69 and a breakdown of 95.45 (20-day sma) would open the door to 94.72 (support line off 2016 low) and then 94.05 (low Aug.18). On the flip side, the next hurdle lines up at 96.12 (high Sep.16) ahead of 96.25 (high Sep.1) and finally 96.50 (high Aug.5).