US Dollar tests sub-94.00 levels, fresh daily lows

• The greenback started the week on a soft note post-Payrolls.
• US 10-year yields move higher to the 2.92% region.
• US Factory Orders, Durable Goods Orders next of relevance.

The greenback, gauged by the US Dollar Index (DXY), is trading on the defensive on Monday, currently probing levels below the critical 94.00 support.

US Dollar looks to data

The index is giving away part of Friday’s NFP-led advance and it is returning to sub-94.00 levels, recording at the same time fresh daily highs.

The greenback started the week on a soft note, somehow attempting to consolidate around the 94.00 region following last week’s fresh cycle tops just beyond 95.00 the figure.

Easing concerns on the Italian political front plus solid prints from the US labour market during last month have been lending support to the risk-associated complex in detriment of the buck. In addition, the lack of sustainable progress in the US-China trade talks coupled with another trade conflict between the US and the EU appear to be weighing down on US for the time being.

On the positioning front, USD speculative net longs climbed to fresh 3-week highs in the week to May 29, as per the latest CFTC report, all coincident with the USD-rally seen in past weeks.

In the data space, US Durable Goods Orders and Factory Orders for the month of April are due next.

US Dollar relevant levels

As of writing the index is losing 0.17% at 94.03 and a breach of 93.72 (low May 31) would aim for 93.64 (23.6% Fibo of the April-June up move) and then 93.57 (21-day sma). On the other hand, the immediate hurdle is located at 94.45 (high May 31) followed by 95.01 (2018 high May 29) and finally 95.15 (monthly highs Oct/Nov. 2017).