In line or modestly stronger US CPI figures to keep USD bid – OCBC

Markets keep their eyes peeled on the US Consumer Price Index (CPI) release. Unless data surprises to the downside, the greenback is set to stay supported, economists at OCBC Bank report.

DXY finds initial resistance at 113.70

“The outcome of CPI print can be asymmetric on markets. If data surprises to the downside, then potentially we may see more downside on USD being played out but data in line with expectation or modestly stronger may just keep USD broadly supported.” 

“Daily momentum is not indicating a clear bias while RSI shows signs of turnaround lower. Bias to lean against strength.” 

“Resistance at 113.70, 114.77 (previous high).”

“Support at 112.40 (23.6% fibo retracement of Aug low to Sep high), 111.78 (21DMA) and 111.00 levels (38.2% fibo).”