US Dollar clings to 90.00 ahead of US data

• DXY is up smalls on Tuesday around the key 90.00 handle.
• ‘Trade war’ jitters appear mitigated, supporting USD.
• Ahead in the day January’s Factory Orders and Brainard’s speech on sight.

The greenback, when tracked by the US Dollar Index (DXY), is looking to extend the positive momentum further north of the 90.00 handle on Tuesday.

US Dollar looks to data, Fedspeak

The index is posting marginal gains today following Monday’s ‘doji-like’ candle, while at the same time appears to be carving a base around the psychological milestone at 90.00 the figure, where strong support emerged as of late.

USD is trading on a better mood today as concerns over a global trade war seem to have subsided amidst some resistance within the Republicans to the recently announced measures by President Trump as well as threats of retaliation from Asian and European trade partners.

Additionally, yields of the key US 10-year reference have rebounded to the vicinity of the 2.90% area late on Monday, somewhat accompanying the up move in the buck.

In the US data space, January’s Factory Orders are due later in the NA session seconded by the speech by FOMC’s permanent voter L.Brainard (mega-dovish).

US Dollar relevant levels

As of writing the index is gaining 0.01% at 90.02 and a break above 90.93 (high Mar.1) would open the door to 91.00 (high Jan.18) ahead of 92.64 (2018 high Jan.9). On the flip side, the next down barrier lines up at 89.85 (21-day sma) seconded by 89.51 (low Feb.26) and finally 88.25 (2018 low Feb.16).