US Dollar bid near 94.30 post-ISM

• The index keeps the bid tone above the 94.00 milestone.
• US Non-farm Payrolls surprised to the upside at 223K in May.
• US ISM manufacturing surpassed estimates at 58.7 during last month.

After climbing to fresh daily highs in the 94.30/35 band, the US Dollar Index (DXY) – which tracks the buck vs. its main competitors – met some sellers, dragging it back to the 94.20 area.

US Dollar bid on upbeat data

The index is managing well to keep business above the critical 94.00 the figure today, although it still struggles to close the third consecutive week with gains, including fresh cycle tops beyond the 95.00 handle on Tuesday.

The buck stays bid after auspicious NFP figures, which saw the US economy adding 223K jobs during May, the jobless rate ticking lower to 3.8% and a healthy uptick in wage inflation figures, all coming in above initial estimates.

In addition, the ISM manufacturing also surprised to the upside, improving to 58.7 during May.

Today’s up move in DXY comes in tandem with a recovery in yields of the US 10-year reference to the boundaries of 2.93%, where it seems to have encountered some resistance so far.

US Dollar relevant levels

As of writing the index is gaining 0.29% at 94.26 facing the next hurdle at 95.01 (2018 high May 29) seconded by 95.15 (monthly highs Oct/Nov. 2017) and finally 96.51 (high Jul.4 2017). On the flip side, a breach of 93.72 (low May 31) would aim for 93.64 (23.6% Fibo of the April-June up move) and then 93.50 (21-day sma).