US Dollar finds some support near 89.50

• DXY tumbles to fresh 6-day lows on risk-on sentiment.
• US Factory Orders surprised to the downside in January (-1.4% MoM).
• Coming up next, FOMC’s Governor Lael Brainard is due to speak.

The US Dollar Index (DXY) remains entrenched into the negative territory today, although it found quite decent support in the vicinity of the 89.50 area.

US Dollar faded the post-Powell rally

The index came under renewed selling pressure on Tuesday, testing fresh lows in the mid-89.00s in response to a sudden and sharp pick up in the sentiment towards the riskier assets.

In fact, USD accelerated the leg lower after North Korean officials slipped the possibility of a denuclearization, quickly forcing geopolitical jitters to fizzle out.

Adding to the bearish note around the buck, concerns over the potential trade wars have also mitigated today as President Trump faces resistance within the Republican party and threats of retaliation from US trade partners in America, Asia and Europe, all following the recent proposals of tariffs on US imports of steel and aluminium.

Today’s US data space showed Factory Orders contracted more than expected 1.4% MoM in January, while orders stripping the Transportation sector rose at a monthly 0.4%.

Later in the NA session, the USD is expected to remain under scrutiny in light of the upcoming speech by FOMC’s L.Brainard (permanent voter, dovish).

US Dollar relevant levels

As of writing the index is losing 0.42% at 89.62 facing the next support at 89.51 (low Feb.26) followed by 88.44 (low Jan.26) and finally 88.25 (2018 low Feb.16). On the other hand, 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).