US Dollar trims losses, near 92.80

• DXY reverts the downside and regains the 92.80 area.
• US 10-year yields leap to daily highs above 2.35%.
• US new home sales surpassed expectations.

After bottoming out in fresh 2-month lows in the mid-92.00s, the US Dollar Index (DXY) managed to regain some attention and is now re-testing the vicinity of the 92.80 area, flirting with the positive territory.

US Dollar up post-US data

The index picked up extra upside traction after US new home sales came in on the strong side in October, expanding 6.82% or 685K units. Yields of the key US 10-year benchmark have also reverted the pullback and are currently testing daily tops beyond the 2.35% handle.

USD also derived some support after news cited the Senate tax bill might be voted as early as Thursday. In this regard, Senator for Kentucky Paul Rand said he will vote for the Senate’s bill.

Looking ahead, the greenback should stay under scrutiny in light of the speeches by FOMC’s Jerome Powell and Chief Janet Yellen later in the week, along with the release of inflation figures gauged by the PCE (Thursday), Fedspeak (all week) and the key ISM manufacturing (Friday).

US Dollar relevant levels

As of writing the index is losing 0.05% at 92.71 and a breakdown of 92.50 (low Nov.27) would open the door to 91.78 (low Sep.22) an d then 91.53 (low Sep.20). On the other hand, the initial hurdle lines up at 93.25 (high Nov.24) seconded by 93.51 (10-day sma) and then 94.03 (23.6% Fibo of 2017 drop).