$BTC additional information about USD and DXY index for everyone:
The US dollar declines while gold reaches a new record amid tax tensions.
DXY is trading near the 99.50 area, weakening despite solid US retail sales.
Trump's investigation into mineral taxes and China's export restrictions has affected sentiment.
The main resistance level remains around 101.15–101.85; support is near 98.93.
The US Dollar Index (DXY) is under pressure on Wednesday, seen around the 99.50 region as risk-averse sentiment leads investors toward safe-haven assets like gold. This occurs despite the release of better-than-expected US retail sales, up 1.4% month-on-month in March to $734.9 billion, exceeding the forecast of 1.3%. Year-on-year growth reaches 4.6%, indicating a recovery in consumer activity. However, the market's focus remains entirely on trade tensions, after US President Trump initiated a new investigation into tariffs on imported critical minerals - perceived as a retaliatory action against escalating non-tariff measures and export controls from China.
The trade dispute escalates as the United States maintains a 145% tariff on imports from China while Beijing keeps a reciprocal tariff at 125%. Meanwhile, gold prices soar to a record high of nearly $3,333 per troy ounce, amid concerns that rising input costs from mineral flow restrictions could choke key sectors such as defense and technology. Global stocks fall as investors weigh the risks of prolonged economic separation between the U.S. and China.
Daily market summary: Gold prices surge while the US dollar declines👉
Retail sales in the United States increased by 1.4% in March, exceeding expectations and growing by 4.6% compared to the same period last year.
President Trump has ordered an investigation into the possibility of imposing tariffs on all types of imported critical minerals, raising supply concerns.
China imposes licensing requirements on key rare earth export items, deepening the trade rift with the United States.
Despite weak diplomatic signals, China reaffirms that negotiations will require mutual respect and an end to threats.
Gold prices hit a record above $3,330 per ounce, benefiting from a weak USD and lower US Treasury yields.
The US dollar remains under pressure due to trade instability and inflation expectations keeping demand for US dollar-denominated assets low.
Global stocks fall after the US announces export restrictions on Nvidia chips and the possibility of imposing mineral taxes.
China's Q1 GDP unexpectedly grew by 5.4% year-on-year, along with better-than-expected industrial output and retail sales.
The technical backdrop for DXY remains weak, with upward momentum trending lower despite solid economic data.
Technical analysis: DXY remains under pressure below a key average.
The US Dollar Index shows a bearish outlook as it drifts near the 99.50 region on Wednesday. The Relative Strength Index (RSI) is at 26.96, firmly in the oversold territory, while the Moving Average Convergence Divergence (MACD) maintains a sell signal with bright red histogram bars. The Commodity Channel Index (CCI) stands at -147.57 indicating a potential buy signal, although broader momentum remains negative.
All major moving averages reinforce the bearish trend. The 20-day simple moving average (SMA) is at 102.77, while the 100-day and 200-day SMAs are at 106.19 and 104.69, respectively, also sloping down. The 10-day exponential moving average (EMA) and SMA are at 101.15 and 101.40, adding to resistance above. On the downside, the next significant support level is at 98.93, while resistance levels are at 101.15, 101.40, and 101.85.
The overall technical structure suggests that unless DXY recovers above the 101.00 region with strong conviction, risks remain skewed to the downside amid falling yield spreads and macroeconomic instability.
👉 In summary: DXY is an index measuring the strength of the USD against 6 currencies. An increasing DXY indicates a strong USD and vice versa. So what does it mean? You just need to have a basic understanding that when it decreases, it will be a recovery for the crypto market as investors will not hoard USD anymore but will seek other assets to buy, such as cryptocurrencies, gold...
