US Dollar Index finds support around 95.00 post-Payrolls

  • The index drops and tests 95.00 following July’s Payrolls.
  • DXY recedes from daily highs on PBoC headlines.
  • US July’s Non-farm Payrolls disappointed consensus at 157K.

The greenback, in terms of the US Dollar Index (DXY), has now reverted the initial positive mood and retreats towards the 95.00 neighbourhood, where it seems to have met decent contention.

US Dollar gives away gains on PBoC, NFP

The index quickly gave away the initial advance to the 95.40 and returned to the 95.00 area following headlines from the PBoC, which decided to adjust the reserve requirement on FX forward trading to 20%, as per news released by Bloomberg.

Furthermore, China announced retaliatory measures including differentiated tariffs on US products worth $60 billion.

The greenback is also deriving some downside pressure after the US economy created 157K jobs during last month, less than initially forecasted. Further data from the US labour market report showed Average Hourly Earnings expanded 0.3% inter-month and 2.7% on a yearly basis, both prints falling in line with prior consensus. In addition, the unemployment rate ticked lower to 3.9%.

Later in the day, the ISM Non-manufacturing is also due.

US Dollar relevant levels

As of writing the index is losing 0.08% at 95.10 facing the next down barrier at 94.69 (10-day sma) seconded by 94.45 (55-day sma) and finally 94.23 (low Jul.31). On the upside, a break above 95.38 (high May 29) would target 95.53 (high Jun.28) en route to 95.65 (2018 high Jul.19).

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD pressured toward 1.17 on Evergrande crisis

EUR/USD is extending its losses, falling toward 1.17. The safe-haven dollar is in demand as the crisis around China's Evergrande deepens and a global slowdown is feared. Tensions toward the Fed decision and also Germany's elections are taking their toll too.


GBP/USD tumbles under 1.37, succumbing to dollar strength

GBP/USD is trading under 1.37, suffering from robust dollar demand. The financial woes of China's Evergrande threaten a drop in global demand. Soaring energy prices are also weighing on sentiment. The Fed and the BOE are eyed later this week.


Gold bears tease five-week low near $1,750, China, Fed eyed

Gold bears regain controls ahead of the key weekly events, down 0.36% intraday near $1,748 heading into Monday’s European session. 

Gold News

Cardano introduces Layer 2 solution Hydra, as ADA price looks to rally 25%

Cardano price is grappling with a crucial support floor on the daily time frame as the big crypto experienced a minor crash. Investors can expect ADA to slice through this barrier before restarting its uptrend.

Read more

Canadian Federal Elections: Not a very crucial vote

Markets are taking a hands-off approach to Monday’s Canadian Federal election between Prime Minister Justin Trudeau's Liberals and Erin O'Toole's Conservatives. 

Read more