US Dollar Index drops to lows near 96.70 on ISM

The index tumbles to 96.60, session lows.
ADP report missed consensus at 179K in November.
US ISM Non-manufacturing came in at 60.7 during last month.

Pablo Piovano FXStreet

The greenback now comes under further downside pressure, forcing the US Dollar Index to slip back to the 96.70/60 band, or fresh daily lows.

US Dollar Index offered post-data

The index is losing further momentum despite the key US ISM Non-manufacturing surprised to the upside in November at 60.7.

On the not-so-bright side, October’s Factory Orders contracted at a monthly 2.1%, more than initially forecasted. Earlier in the session, the ADP report showed the US private sector added 179K jobs during last month, missing consensus. In addition, the trade deficit widened to $55.5 billion in October.

The index remains under pressure in the meantime, receding from another failed attempt to break above weekly peaks around 97.20, always on the back of an improved tone in the risk-associated space.

US Dollar Index relevant levels

As of writing the index is losing 0.38% at 96.66 facing the next support at 96.32 (low Nov.22) followed by 96.04 (low Nov.20) and finally 95.68 (low Nov.7). On the upside, a break above 97.53 (high Nov.28) would open the door to 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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