US Dollar Index moves to daily highs above 93.00
- DXY gathers traction and surpasses 93.00 post-NFP.
- US economy added nearly 1.4M jobs in August.
- The jobless rate dropped more than expected during last month.
The greenback is prolonging the weekly recovery and extends the bounce to the area above 93.00 the figure when tracked by the US Dollar Index (DXY).
US Dollar Index in weekly tops above 93.00
The index is now up for the fourth consecutive session and recording fresh weekly highs above the 93.00 yardstick, as the selling sentiment surrounding the riskier assets stays unabated so far.
The dollar managed to pick up extra pace after the US economy created nearly 1.4 million jobs during last month and the jobless rate dropped more than expected to 8.4%.
The (in general) positive labour market report adds to recent better-than-expected results from the US fundamentals, which have been also sustaining the corrective upside in the buck.
What to look for around USD
The index extends the rebound from fresh +2-year lows near 91.70. Despite the ongoing recovery, and looking at the broader picture, investors keep the bearish view on the dollar unchanged against the backdrop of a (more) dovish Fed, the unremitting progress of the coronavirus pandemic and political uncertainty ahead of the November elections. On the supportive side of the buck emerge occasional bouts of US-China tensions.
US Dollar Index relevant levels
At the moment, the index is gaining 0.31% at 93.01 and a break above 93.10 (weekly high Sep.4) would open the door to 93.47 (weekly high Aug.21) and finally 93.99 (monthly high Aug.3). On the other hand, the next support is located at 91.75 (2020 low Sep.1) seconded by 89.23 (monthly low April 2018) and then 88.94 (monthly low March 2018).
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.
