US Dollar treading water near 91.60, daily lows

The US Dollar Index, which tracks the buck vs. it’s a basket of its main rivals, remains under pressure so far today around the 91.60 area, or session troughs.

US Dollar consolidative ahead of FOMC

The index remains entrenched into the negative territory on Tuesday, reverting yesterday’s gains although within the recent sideline theme as cautiousness is expected to pick up ahead of tomorrow’s FOMC meeting.

USD showed no reaction after US building permits and housing starts came in above estimates in August, while export prices and import prices also bettered forecasts during the same period.

In the meantime, the greenback’s stance remains fragile amidst increasing uncertainty in the US political arena, where Trump’s tax reform plans and the ‘debt ceiling’ are in at the top of investors’ attention.

Regarding the FOMC gathering, market participants have already ruled out any move on rates by the Federal Reserve tomorrow, although the centre of the debate should gravitate around any clues on the Fed’s plans to start reducing its balance sheet.

US Dollar relevant levels

As of writing the index is retreating 0.09% at 91.67 and a breakdown of 91.58 (low Sep.15) would open the door to 91.01 (2017 low Sep.8) and finally 89.65 (low Dec.25 2015). On the upside, the initial hurdle aligns at 92.20 (high Sep.18) followed  by 92.37 (21-day sma) and then 92.66 (high Sep.14).