DXY remains supported at 96.70 – Westpac

According to strategists at Westpac, the US Dollar Index (DXY) could be well supported in the 96.70 region.

Key Quotes

“The USD index has scope for gains toward 100 but further meaningful sustained strength beyond that will likely prove elusive”.

“A mildly more upbeat sounding FOMC should see Sep Fed hike expectations continue to nudge higher but six-weeks ahead of that meeting the probability is unlikely to rise much beyond 45% (currently 28%)”.

“Our US data surprise index warns that most of the good news on the US activity front is now behind us too”.

“Trend resistance held though daily chart suggests there is support at 96.7”.