US Dollar bounces off lows, retakes 102.00 and above

The greenback – tracked by the US Dollar Index – has regained some attention on Thursday and has is now navigating the low-102.00s after bottoming out near 101.80.

US Dollar weaker ahead of ADP

The index has managed to revert part of the initial negative tone, rebounding from fresh 3-week lows in the proximity of 101.80 and regaining the 102.00 handle and above.

USD met extra selling pressure in spite of the hawkish tone delivered by the FOMC minutes on Wednesday, suggesting that the Federal Reserve might have to accelerate its tightening bias in response to potential fiscal stimulus under Trump’s administration. However, governors noted the ‘considerable uncertainty’ surrounding the timing, size and composition of such fiscal stimulus, prompting the buck to extend its correction lower.

Later in the NA session, the US private sector is expected to have created 170K jobs during December, while the ISM Non-manufacturing is seen ticking lower to 56.6 during the same period, down from November’s 57.2.

US Dollar relevant levels

The index is losing 0.21% at 102.27 and a breakdown of 101.73 (low Jan.4) would open the door to 100.75 (low Dec.14) and then 100.59 (55-day sma). On the upside, the initial hurdle lines up at 103.81 (2017 high Jan.4) followed by 107.38 (monthly high Dec.2002) and finally 109.25 (monthly high Aug.2002).