US Dollar trims losses to 92.50 post-US ISM

The index remains in the negative ground albeit above 92.00.
US 10-year yields bounce off lows and retake the 2.95% level.
US ISM Non-manufacturing came in below forecasts in April.

Pablo Piovano FXStreet

Tracked by the US Dollar Index (DXY), the buck remains on the defensive today and is reverting a 3-day positive streak although managing well to keep business above the critical 92.00 milestone.

US Dollar above ahead of Payrolls

The index is around the mid-92.00s in the wake of fresh releases in the US docket, where Factory Orders expanded at a monthly 1.6% in March, Durable Goods Orders rose 2.6% in the same period and Markit’s Services PMI advanced a tad to 54.6 for the month of April.

On the not so bright side, the Non-manufacturing gauge measured by the ISM missed estimates at 56.8 during last month.

Previously, Initial Claims rose by 211K WoW, bettering estimates while March’s trade deficit shrunk to $49 billion, also surprising to the upside.

In the meantime, the buck keeps the weekly upside unaltered, with yields of the US 10-year note off multi-year highs above the 3.0% level although finding some contention in the 2.94% neighborhood today.

Next of relevance in the US docket will be Non-farm Payrolls for the month of April, expected tomorrow.

US Dollar relevant levels

As of writing the index is losing 0.24% at 92.53 facing initial contention at 91.96 (200-day sma) seconded by 91.70 (50% Fibo of 95.15-88.25) and finally 91.59 (10-day sma). On the upside, a breakout of 92.83 (2018 high May 2) would open the door to 93.68 (78.6% Fibo of 95.15-88.25) and then 94.22 (high Dec.12 2017).

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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