US Dollar Index retreats from tops post-Payrolls, back around 92.40
- DXY fades the earlier move to the 92.70/75 zone.
- The US economy created 850K jobs in June.
- The jobless rate edged higher to 5.9% (from 5.8%).
The greenback now struggles for direction in the mid-92.00s when gauged by the US Dollar Index (DXY) on Friday.
US Dollar Index looks disappointed after NFP
The index now trades in a volatile fashion and receded from earlier tops after the US economy added 850K jobs during last month, surpassing estimates for a 700K gain. The unemployment rate, however, edged higher to 5.9% vs. expectations for a drop to 5.7%.
More from the labour market report showed the Average Hourly Earnings rose 0.3% MoM and 3.6% from a year earlier, while the Participation Rate stayed unchanged at 61.6%.
Other data saw the trade deficit widening to $71.2 billion in May (from $69.1 billion). Later, the May’s Factory Orders will close the weekly US docket.
Despite market participants appear somewhat disappointed on the Payrolls report, the constructive outlook for the dollar is unlikely to be dented, at least in the short-term horizon. The labour market keeps recovering along with other key fundamentals and it all adds to the imminent full re-opening of the economy narrative as well as prospects of anticipated tapering talks.
US Dollar Index relevant levels
Now, the index is losing 0.14% at 92.40 and faces the next support at 91.51 (weekly low Jun.23) followed by 91.43 (200-day SMA) and finally 89.53 (monthly low May 25). On the upside, a breakout of 92.69 (weekly high Jul.1) would open the door to 93.00 (round level) and finally 93.43 (2021 high Mar.21).