US Dollar Index struggles for direction around 92.80 ahead of NFP
- DXY remains flat-lined below the 93.00 mark on Friday.
- Global markets navigate within a narrow range ahead of key data.
- Non-farm Payrolls will take centre stage later in the NA session.
The US Dollar Index (DXY), which gauges the greenback vs. a bundle of its main rivals, trades within a tight range around the 92.80 area.
US Dollar Index looks to Payrolls
Following three consecutive sessions with gains, the index has now entered into a consolidative/narrow range below the 93.00 mark amidst increasing cautiousness among traders ahead the US labour market report for the month of August.
In fact, the dollar managed to regain composure in past sessions after bottoming out in the 91.70 region, or +2-year lows, earlier in the week. Positive results from the US docket plus renewed selling bias in the risk complex collaborated in the recent rebound in the buck.
Later in the NA session, August’s Non-farm Payrolls will be in the centre of the debate. Consensus among market participants expect the economy to have added 1.4 million jobs during last month and the unemployment rate to have decreased to 9.8%.
What to look for around USD
The index extends the rebound from fresh +2-year lows near 91.70 although the bullish attempt faltered around the 93.00 neighbourhood. 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 0.01% at 92.79 and a break above 93.07 (weekly high Sep.3) 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).