US Dollar bounces off lows, back near 92.50

The US Dollar Index – which tracks the buck vs. a basket of its main rivals – is now trading on the defensive in the mid-92.00s following the disappointing figures from US non-farm payrolls in August.

US Dollar now looks to US ISM

The greenback came under renewed downside pressure after US payrolls added 156K jobs during last month vs. 180K initially expected. Adding to the weak results, the jobless rate edged higher to 4.4% (vs. 4.3%) and inflation wage remained stagnant, expanding 0.1% inter-month and 2.5% over the last twelve months.

DXY sunk to the mid-92.00s in the wake of the release, although it managed to regain some traction after another bout of ECB rumours forced EUR/USD to abandon the area of daily highs around 1.2980.

Ahead in the session, the greenback should stay under pressure in light of the release of the key ISM manufacturing for the month of August.

US Dollar relevant levels

As of writing the index is losing 0.02% at 92.57 facing the next support at 91.62 (2017 low Aug.29) followed by 91.51 (low Jan.15 2015) and finally 90.00 (psychological handle). On the flip side, a break above 92.85 (10-day sma) would target 93.19 (21-day sma) en route to 93.33 (high Aug.31).