US Dollar corrects as risk aversion wanes

The US Dollar Index (DXY) – which tracks the greenback vs. its main rivals, has been moving in a tight range in the last hour around 100.60, after having found a strong support near 100.50. 

The index has been struggling to rise back above the 101 level that it broke yesterday during the NA session. A wave of risk aversion took control of the markets on Tuesday when the American traders hit their desks. The sharp drop witnessed in the U.S. 10-year bond yield pushed the index lower to 100.50. However, as the deceleration of the yields slowed down, the index found an opportunity to make a technical correction. At the moment, the DXY is down 0.3% at 100.63.

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Minneapolis Fed's N.Kashkari didn't much to the markets as he simply repeated how the Fed has more work to do to reach the set unemployment and inflation goals. Earlier during the session, JOLTs Job Openings came in at 5.743 million in February, beating the forecasts but the data was largely ignored.

Technical levels

The initial support for the index aligns at 100.50 (daily low) followed by 100 (psychological level) and 99.80 (Mar. 30 low). On the upside, a break above 101.20 (yesterday's high) could aim for 101.55 (Mar. 14 high) and 102 (psychological level).