Dollar remains firm after better than forecast US housing data
Housing starts rose to 1.14 million in April, the highest in seven years, from 1.04 million in March, better than estimates of a rise to 1.06 million.
Building permits also climbed to 1.14 million, compared to both prior and predicted readings of 0.93 million and 1.02 million.
Housing starts rose just 2 percent from February to March as the bad winter weather, noting that U.S. growth eased to 0.2 percent in the first quarter.
Lukewarm jobs, retail sales and consumer sentiment reports released last week raised concerns the weak growth pace would continue in the three months through June.
Investors will focus tomorrow on FOMC minutes for April’s policy meeting to track any signals of the Fed’s rate hike.
Later in the week, the U.S. will release manufacturing and inflation data.
The dollar index, which tracks the greenback’s movement versus a basket of major currencies, set a new high of 95.41 after the housing data, compared to the session’s opening of 94.20.
The six-currency gauge may face some downside pressure as it approaches the 50-center line for the RSI 14 momentum indicator.
The coming resistance ahead is located at 96.00, where it is currently facing resistance near SMA 20 located at 95.40.