US Dollar Index bounces off session lows post-Payrolls

• The index sinks to the mid-95.00s following NFP.
• Yields of the US 10-year note retreat from tops near 3.24%.
• US Non-farm Payrolls disappointed expectations at 134K in September.

In terms of the US Dollar Index (DXY), the greenback is now losing further ground and test daily lows in the mid-95.00s.

US Dollar Index offered after Payrolls

The index came under further downside pressure today after the US economy added 134K jobs during last month, less than initially forecasted. On the brighter side, August’s Payrolls were revised higher to 270K jobs from 201K jobs and the unemployment rate ticked lower to 3.7%.

The key Average Hourly Earnings, a closely-followed proxy for wage inflation, met estimates, rising at a monthly 0.3% and 2.8% over the last twelve months.

Further data apart from the labour market saw the trade deficit in August widening below estimates to $53.20 billion.

Despite the current knee-jerk, the index manages well to keep gains for the second consecutive week so far.

US Dollar Index relevant levels

As of writing the index is up 0.03% at 95.79 and faces the next hurdle at 96.12 (high Oct.4) seconded by 96.98 (2018 high Aug.13) and finally 97.87 (61.8% Fibo retracement of the 2017-2018 drop). On the other hand, a break below 95.11 (55-day SMA) would aim for 94.88 (21-day SMA) and then 93.81 (low Sep.17).