US Consumer Confidence Preview: Some weakness could emerge in August

• The Conference Board survey expects Consumer Confidence in the US to remain subdued in August.
• The survey could shed further light on consumers' views following the latest inflation and labour data.
• The US Dollar Index faces the next support around the 97.50 region.

The United States (US) will see the release of the August Conference Board's Consumer Confidence Index on Tuesday. The report is a monthly survey conducted by the Conference Board that gathers information on consumer behaviour, expectations, purchasing intentions, and vacation plans.

The report contains several sub-readings: The Present Situation Index, which measures consumers' perceptions of current business and labour market conditions, and the Expectations Index, which measures the short-term outlook for income, business, and employment.

On the whole, Consumer Confidence is expected to register a mild decline to 96.4 in August after rising to 97.2 in July. In June, the Consumer Confidence Index fell to 95.2.

In July, the Present Index Situation dropped to 131.5, while the Expectations Index increased to 74.4.

How can the Conference Board's report affect the US Dollar?

The US Dollar Index (DXY) sold off on Friday exclusively in response to Federal Reserve (Fed) Chair Powell's dovish remarks at the Jackson Hole Symposium.

Pablo Piovano, Senior Analyst at FXStreet, notes, "If the DXY slips below its multi-year low of 96.37 (July 1), the next major support lines up at 95.13 (February 4) and 94.62 (January 14)."

"On the flip side, the first obstacle is the August high at 100.25 (August 1); a decisive break there could clear the way to 100.54 (May 29) and then the May peak at 101.97 (May 12)," Piovano adds.

"Momentum indicators are also softening, as the Relative Strength Index (RSI) has eased to nearly 46, suggesting waning bullish momentum, while the Average Directional Index (ADX) is holding near 13, signalling a lack of strong directional trend", he concludes.