US Dollar trades mixed after positive Consumer Confidence data

• FOMC Meeting Minutes are the next shoe to drop later on Tuesday.
• USD fluctuates after positive Consumer Confidence figures from the Conference Board before volatility subsides.
• President-elect Trump threatens tariffs on Mexico, Canada and China, boosting the Greenback.

In Tuesday's session, the US Dollar Index (DXY) which measures the value of the Greenback against a basket of currencies, fluctuated near 107.00 following the release of key economic data. In the meantime, markets digest President-elect Donald Trump's threat to impose tariffs on three of its largest trading partners and await clues in the Federal Open Market Committee (FOMC) Meeting Minutes to be released later in the session.

The US Dollar Index has exhibited a bullish bias, driven by strong economic data and a less dovish Federal Reserve (Fed) stance. Despite recent pullbacks due to profit-taking and geopolitical uncertainty, the uptrend remains intact. Technical indicators suggest potential consolidation with overbought conditions easing. 

Daily digest market movers: US Dollar appears neutral after Consumer Confidence data

• Consumer Confidence in the United States improved in November with the Conference Board's index increasing from 109.6 to 111.7.
• The Present Situation Index rose by 4.8 points to 140.9, while the Expectations Index edged higher to 92.3.
• Ahead of the FOMC Minutes, the CME FedWatch Tool estimates a 59% probability of a further 25 bps rate cut by the Fed on December 18.
• The US 10-year Treasury benchmark rate declined to 4.29%, down from its recent high of 4.50%.

DXY technical outlook: Consolidating near 107.00, uptrend remains intact despite recent pullbacks 

The DXY is consolidating after a strong rally, having pulled back from two-year highs. The index is currently hovering around 107.00, near the upper end of its recent trading range.

Technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), are suggesting potential for a correction, but the overall bullish momentum remains strong. The DXY is likely to face resistance at 108.00 and support at 106.00-106.50. A break above 108.00 would signal a continuation of the uptrend, while a break below 106.00 would indicate a deeper correction is possible.