Dollar index holds above 90.00 amid risk aversion and fears of US govt. shutdown

• Dollar index flatlined above 90.00.
• Previous day's doji candle points to indecision in the market. 
• Risk-off tone and fears of government shutdown keep cap upside in USD and yields.

Having posted a doji candle yesterday, the dollar index (DXY), which tracks the value of the greenback against major currencies, is trading flat at 90.20 levels in Asia. 

The previous day's doji candle indicates indecision following amid rising yields-led risk aversion in the equities. The anti-risk currencies like the Japanese Yen and Swiss Franc are on the rise against the USD, courtesy of the 1000 point drop in the Dow index. The USD/JPY pair fell more than 100 pips yesterday and was last seen trading around 108.85 levels. Meanwhile, USD/CHF also fell more than 100 pips to 0.9348. 

Further, the US government on Thursday night slid toward at least a brief shutdown as a single Republican senator, Rand Paul of Kentucky, held up a vote on a far-reaching budget deal that would stave it off, according to New York Times. So far the news has not had a notable impact on the dollar. That said, worsening of risk aversion in the equities due to government shutdown may push the DXY below 90.00. 

Dollar Index Technical Levels

A break below 89.90 (previous day's low) would open doors for 89.33 (Feb. 7 low) and 89.00 (psychological level). On the higher side, breach of resistance at 90.27 (Feb. 7 high) would expose 90.46 (previous day's high) and 90.77 (Jan. 18 high).