US Dollar rebounds from lows near 92.40 on Payrolls

• The index briefly dropped to lows near 92.40 post-NFP.
• US 10-year yields tumble to lows in the 2.91% region.
• US Non-farm Payrolls came in at 164K in April, below forecasts.

After an ephemeral test of lows near 92.40 in the wake of Non-farm Payrolls, the US Dollar Index (DXY) retakes the 92.50 region.

US Dollar within range on NFP

The index keeps the familiar range today despite US Non-farm Payrolls figures disappointed expectations today. In fact, the US economy added 164K jobs during last month, missing expectations at 189K and a higher than March’s 135K (revised from 103K).

Furthermore, the unemployment rate came in on the strong side, dropping to 3.9% vs. 4.0% forecasted and down from 4.1%. However, the key Average Hourly Earnings expanded 0.1% inter-month and 2.6% on an annualized basis, both readings missing initial estimates.

In the meantime, the underlying constructive tone around the buck remains well and sound despite US yields keep retracing the recent up move to cycle highs beyond the 3.0% level. DXY is on the way to close the third consecutive week with gains, including fresh YTD peaks near 92.80.

US Dollar relevant levels

As of writing the index is gaining 0.12% at 92.54 and 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). On the other hand, initial contention emerges at 91.96 (200-day sma) seconded by 91.79 (10-day sma) and finally 91.70 (50% Fibo of 95.15-88.25).