US Dollar extend the upside to 96.30

The greenback, tracked by the US Dollar Index, has reverted the initial negative mood and is now back with gains near 96.30.

US Dollar bolstered by data, sentiment

The greenback keeps its buoyancy intact at the beginning of the week, with the index trading well into the 96.00 handle as market continue to adjust to July’s better-than-expected Non-farm Payrolls (255K).

USD has managed to close last week with gains and to extend the rebound from recent lows in sub-95.00 levels helped by an unexpected strong results from the US labour market during last month as well as renewed expectations of a potential rate hike by the Fed at the September meeting.

Light calendar today in the US economy, with only the usual Fed’s Labor Market Conditions Index following the latest NFP report.

US Dollar relevant levels

The index is gaining 0.11% at 96.30 facing the immediate up barrier at 96.50 (high Aug.5) followed by 96.63 (200-day sma) and finally 97.05 (78.6% Fibo of July-August drop). On the other hand, a breach of 95.12 (100-day sma) would open the door to 94.94 (low Aug.2) and then 94.03 (up trend off 2016 low at 91.88).