US Dollar Index depressed around 97.50, 4-week lows

• DXY stays offered in the 97.50/45 band on Thursday.
• US Initial Claims in 7-month lows at 203K WoW.
• US Factory Orders, Durable Goods Orders next on the calendar.

The US Dollar Index (DXY), which gauges the buck vs. a bundle of its main competitors, remains entrenched into the negative territory so far this week.

US Dollar Index looks to further data

The index is now intensifying the downside following the positive opening bell in Wall St. and is falling to fresh lows near 97.40. It is worth mentioning that the greenback met extra downside pressure following the breakdown of the critical 200-day SMA around 97.60 earlier in the week.

In the meantime, the change of heart in the dollar following the rejection from last week’s tops in the mid-98.00s remains well sustained by poor results in the some relevant US fundamentals as of late along with inconclusive headlines from the US-China trade front.

In the US data universe, weekly Initial Claims rose 203K WoW, the lowest level in the last seven months. In the same line, the trade deficit shrunk to $47.2 billion during October, also bettering estimates. Earlier, Challenger Job Cuts dropped to 44.569K during November.

Later in the session, October’s Factory Orders and Durable Goods Orders are closing Thursday’s docket.

What to look for around USD

The dollar remains under moderate pressure, exacerbated after the recent loss of the 200-day SMA near 97.60. In the meantime, the focus of attention remains on US-China headlines and the US docket, which kept disappointing investors as of late. The constructive view on the dollar is now compromised as the apparent slowdown in the US economy seems to be gathering traction despite the ‘wait-and-see’ stance from the Fed vs. the broad-based dovish view from its G10 peers, the dollar’s safe haven appeal and its status of ‘global reserve currency’.

US Dollar Index relevant levels

At the moment, the pair is retreating 0.18% at 97.43 and faces the next support at 97.41 (monthly low Dec.5) seconded by 97.11 (monthly low Nov.1) and then 97.03 (monthly low Aug.9). On the flip side, a break above 98.13 (100-day SMA) would aim for 98.54 (monthly high Nov.29) and finally 99.25 (high Oct.8).