USD starts NFP week with mix results

The US dollar rose modestly during Monday’s Asian session but then lost strength. It turned negative against commodity currencies but rose further against its European rivals and the yen.

On a quiet US session, greenback found support from US economic data. The ISM Manufacturing index climbed back into expansionary territory during last month, rising to 51.5 (above the 50.3 initially estimated) and up from previous month 49.4. The Markit’s Manufacturing PMI also advanced to 51.5 in September. The negative number of the day was construction spending that dropped 0.7%  in August against expectations of a 0.2% gain.

Regarding US economic data, traders await the release of the US employment report that will be published on Friday.

The US Dollar index, which gauges the US dollar against its main competitors, peaked during the American session at 95.68, below Friday’s highs and then pulled back. Near the end of the session it was trading at 95.55, up 0.20% for the day.

In the currency market, the Australian dollar ahead of the RBA decision was among the top performers, while the pound was the worst affected after Prime Minister Theresa May Said that the UK would start Brexit by March.

DXY Technical levels

To the upside, resistance levels might be located at 96.60 (Sep 28 high), 96.70 (daily high), 96.85 (last week high) and 97.00 (psychological). On the opposite direction, support could be seen at 95.50, followed by 95.30 (daily low), 95.20 (Sep 29 & 30 low) and 94.95 (Sep 26 low).