DXY: CPI in Focus – OCBC

US Dollar (USD) traded mixed with strength seen vs. most Asian FX including THB, IDR, PHP while USD was modestly softer vs. CHF, EUR and precious metals. DXY was last at 98 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Bullish momentum on daily chart intact

"Focus remains on US CPI tonight (830pm SGT). Any slippage in data may serve as a good entry point to fade the USD bounce but we caution that a firmer print may see USD extend its move higher."

"Elsewhere on geopolitics, President Trump announced plans to arm Ukraine and also threatened to impose secondary tariffs or more sanctions if Russia fails to reach a peace deal with Ukraine by early September."

"Bullish momentum on daily chart intact but rise in RSI moderated. Resistance at 98.50, 98.80 (50 DMA). Support at 97.80 (21 DMA), 97.20 levels. Overall, we still expect USD to trade weaker as USD diversification/ re-allocation trend, Fed cut cycle take centre-stage. US policy unpredictability, and concerns of about the rising trajectory of debt and deficits in the medium term should continue to underpin the broad decline in the USD."