US Dollar Index struggles to keep 93.00 post-Payrolls
|- DXY extended the daily upside to the 93.30 area on Friday.
- The US economy created nearly 1.8 million jobs in July.
- The jobless rate moved lower to 10.2%, bettering previous estimates.
The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main rivals, keeps the buying bias unchanged around the 93.00 mark on Friday.
US Dollar Index trims daily gains to 93.30
The index is now coming down and tests the 93.00 neighbourhood, as the post-NFP uptick to daily highs near 93.30 lacked follow through.
In fact, the dollar advanced to the 93.25/30 band after Non-farm Payrolls showed the US economy created nearly 1.8 million jobs during last month and the unemployment rate edged lower to 10.2% (from 11.1%), both prints beating forecasts.
Additional data saw the Average Hourly Earnings expanding 0.2% MoM and 4.8% from a year earlier.
With Payrolls already out, investors are now expected to keep closely watching the events from the US political scenario, where lawmakers are expected to resume the debate of another coronavirus bill.
What to look for around USD
The dollar clinched fresh lows near 92.50 in the second half of the week, albeit managing to regain some traction and retest the 93.00 mark afterwards. Occasional bullish attempts in the index, however, appears to have run out of favour in the 94.00 region (Monday). Looking at the broader picture, investors keep the bearish stance on the currency unchanged against the usual backdrop of a dovish Fed, the unabated advance of the pandemic and somewhat diminishing momentum in the economic recovery. Also weighing on the buck, market participants seem to have shifted their preference for other safe havens instead of the greenback on occasional bouts of risk aversion. On another front, the speculative community remained well into the negative territory for yet another week, adding to the idea of a more serious bearish trend in the dollar.
US Dollar Index relevant levels
At the moment, the index is gaining 0.26% at 93.01 and a break above 93.99 (weekly high Aug.3) would target 94.20 (38.2% Fibo of the 2017-2018 drop) en route to 96.03 (50% Fibo of the 2017-2018 drop). On the other hand, the next support is located at 92.52 (2020 low Aug.6) seconded by 91.80 (monthly low May 18) and finally 89.23 (monthly low April 2018).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.