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  • The rally in the buck remains well and sound so far today.
  • The ADP report surprised to the upside at 230K in September.
  • US ISM Non-manufacturing came in at 61.6 during last month.

The greenback, gauges by the US Dollar Index (DXY), has reverted the initial pessimism and is now approaching the key area around 95.70.

US Dollar Index bid after data

The index managed to leave behind the initial negative tone after auspicious headlines from the Italian political arena had no follow through among market participants.

In fact, comments from officials aiming to a lower budget deficit in the next years gave an initial boost to the risk-associated assets, although the optimism lacked sustainability and was ephemeral.

Collaborating with the resumption of the upside momentum in the buck, the US private sector added 230K jobs during last month according to the ADP report, surpassing previous estimates.

Further data saw Markit’s September final Services PMI at 53.9 vs. 53.4 expected and the key ISM Non-manufacturing at 61.6 during the same period, the best reading since 2005.

US Dollar Index relevant levels

As of writing the index is gaining 0.14% at 95.61 facing the next up barrier at 95.74 (monthly high Oct.2) seconded by 96.04 (50% Fibo retracement of the 2017-2018 drop) and finally 96.98 (2018 high Aug.13). On the downside, a breakout of 94.80 (21-day SMA) would aim for 93.81 (low Sep.17) and then 93.71 (monthly low Jul.9).