Ella 
The U.S. dollar index rebounded and regained the 104.70/80 area on Tuesday.
Dollar index finds buying support ahead of key data
The U.S. dollar index resumed its upward move after falling lower at the start of the week amid selling pressure on risk assets, a lack of direction in U.S. Treasury yields and caution ahead of U.S. inflation data on September 13.
From a more macro level, the market continues to believe that the July interest rate hike will be the last in the current interest rate hike cycle of the Federal Reserve, and an interest rate cut may occur in the second quarter of 2024.
Later today, the United States will only release the NFIB Business Optimism Index, followed by the API crude oil inventory report for the week ending September 8.
What to expect from USD
The index has rebounded from a four-day low near 104.40 recorded on Monday and is once again eyeing the 105.00 area.
At the same time, the strength of the U.S. economy continues to support the dollar, even as the narrative that the Fed will keep interest rates higher in the longer term looks diminished amid ongoing deflation and a cooling job market.
Key US events this week: MBA mortgage applications, inflation rate, monthly budget statement (Wednesday), initial jobless claims, PPI, business inventories (Thursday), industrial output, latest University of Michigan consumer confidence Index (Friday).
Hot Topic: The ongoing debate over a soft/hard landing for the U.S. economy. The Fed is expected to cut interest rates in early 2024. Confronting the geopolitical conflict between Russia and China.
US dollar index related levels
The index is currently up 0.20% at 104.73, with the next rising resistance at 105.15 (high on September 7), then 105.88 (high on March 8, 2023) and 106.00 (integer). On the other hand, a move above 103.02 (200-day SMA) would open the door for a drop to 102.93 (August 30 low) and 102.67 (55-day SMA).
