US Dollar tumbles to 3-day lows near 95.70

The greenback, in terms of the US Dollar Index, has now surrendered its initial gains and has dropped to the 95.75/70 band, or session lows.

US Dollar weaker post-data

After advancing to fresh daily highs near 96.10 earlier in the session, the index sparked quite a moderate correction lower to the area of 95.70 following the disappointing print from US ADP report.

In fact, the US private sector added fewer jobs than initially forecasted while extra data showed initial claims rising by 248K WoW and May’s trade deficit shrinking to $46.5 billion on better figures vs. China and Europe.

DXY came under heavy selling pressure following the ADP release despite US yields, particularly the 10-year reference keeps the area near multi-day tops just below 2.39%.

Ahead in the session, Markit’s services PMI is due followed by the more relevant ISM non-manufacturing and the speech by FOMC’s J.Powell (permanent voter, centrist).

US Dollar relevant levels

The index is retreating 0.22% at 95.76 and a breach of 95.22 (2017 low Jun.30) would target 94.95 (low Sep.22 2016) en route to 94.05 (low Aug.18 2016). On the other hand, the next up barrier aligns at above 96.25 (high Jul.5) seconded by 96.32 (high Jun.28) and then 96.65 (21-day sma).