Dollar Faces Higher Hurdle After FOMC Interest Rate Hike

The US Dollar Index (DXY) has maintained its firmer tone after the Federal Reserve's 25 basis point interest rate hike, according to OCBC's Christopher Wong. He notes that the increased US Treasury yields have provided support for the dollar. However, Wong stresses that further gains in the DXY are likely to require additional upward momentum in yields or stronger economic data from the US.

The key resistance levels for the DXY are seen around 100.32-100.60, while support is near 99.90-99.20. The dollar's recent rise has been moderate, with some signs of overbought conditions. This week's PMI releases and Fed communication could play a crucial role in determining whether the US dollar's rebound has further room to run.