The US Dollar (USD) trades sideways on Tuesday, with the DXY Index slightly above 108.00, as markets are starting to unwind towards the Christmas holiday. The Greenback failed to significantly move despite news that China’s policymakers are floating the idea of selling nearly 3 trillion Yuan (CNH) in special treasury bonds in 2025, Reuters reported on Tuesday. The additional capital should boost the slowing and sluggish Chinese economy. The US economic calendar is a very light one on Tuesday, with just minor indicators such as the Philadelphia Fed Non-Manufacturing Activity Index and the Richmond Fed Manufacturing Index regional surveys for December. One main takeaway for the last few data points of December is that the US manufacturing sector is sounding the alarm bell, with several indicators confirming the sector is falling further into contraction.
Daily digest market movers: Light participation
US Dollar Index Technical Analysis: Final strawThe US Dollar Index (DXY) is trading in a rather narrow range this Tuesday. More and more traders will not participate in markets today, which will mean nearly no reaction in prices unless a big headline comes up. It thus looks like the DXY is set to close off Christmas eve very close to a two-year high. On the upside, a trend line originating from December 28, 2023, is acting as a moving cap. The next firm resistance comes in at 109.29, which was the peak of July 14, 2022, and has a good track record as a pivotal level. Once that level is surpassed, the 110.00 round level comes into play. The first downside barrier comes in at 107.35, which has now turned from resistance into support. The second level that might be able to halt any selling pressure is 106.52. From there, even 105.53 could come under consideration while the 55-day Simple Moving Average (SMA) at 105.23 is making its way up to that level. US Dollar Index: Daily ChartMore By This Author:Crude Oil Volatility Settles Down Ahead Of API Stockpile Data Crude Oil Flattens Amid Rather Positive Market Sentiment Ahead Of Christmas US Dollar Hits Fresh Two-Year High Ahead Of PCE Inflation