US Dollar Index remains bid near 93.40, monthly tops

• The upbeat mood in the dollar remains well and sound.
• US 10-year yields drop further and approach 1.30%.
• The NAHB Index is due next in the US docket.

The buying interest around the greenback remains well in place for yet another session and pushes the US Dollar Index (DXY) to fresh peaks near 93.50 on Monday.

US Dollar Index focuses to the FOMC event

The index trades in levels last seen in late August near the 93.50 level at the beginning of the week, extending the recovery for the third session in a row.

Risk aversion kicked in on Monday in response to China’s Evergrande jitters and increasing fears of contagion to the real estate and financial markets, all rendering into fresh legs for the dollar.

In the US bonds markets, yields of the 10-year reference note continue to grind lower and approach the key 1.30% level, coming down from last week’s tops above 1.38%.

In the data space, the NAHB Index will close the day along with short-term auctions.

US Dollar Index relevant levels

Now, the index is gaining 0.08% at 93.32 and a break above 93.45 (monthly high Sep.20) would open the door to 93.72 (2021 high Aug.20) and then 94.30 (monthly high Nov.4 2020). On the flip side, the next down barrier emerges at 92.32 (weekly low Sep.14) seconded by 91.94 (monthly low Sep.3) and finally 91.78 (monthly low Jul.30).