DXY: Bears await inflation prints – OCBC

US Dollar (USD) rebounded post-BLS revision in what looked like a 'buy on rumour, sell the fact' trade. DXY was last at 97.82 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Daily momentum is showing a mild bearish bias

"Markets have fully priced in a 25bp cut for September FOMC and nearly 3 cuts for 2025. Focus shifts to PPI today and the CPI on Thursday. Softer inflation print may be needed for markets to consider if a 50bp cut at September FOMC or a deeper Fed cut trajectory may be warranted."

"Daily momentum is showing a mild bearish bias while RSI was flat. 2-way trades intra-day with bias to sell rallies. Resistance at 98.10 levels (21, 50 DMAs), 98.70 (100 DMA) and 99.60 (23.6% fibo retracement of 2025 high to low). Support at 96.40 levels."