US Dollar treading water around 93.20, ADP eyed

The greenback, when tracked by the US Dollar Index (DXY) is trading on the defensive on Wednesday and is attempting to consolidate around the 93.20/30 region.

US Dollar looks to ADP, Yellen

After a positive start of the week,  the index is now trading in the negative territory, as the upside momentum in yields of the key US 10-year benchmark have eased somewhat to the 2.31% area, around 6 bp down from Monday’s tops beyond 2.37%.

In addition, USD-sellers seem to have returned to the markets after the Federal Reserve published on Tuesday its shortlist for candidates to its presidency, showing rising odds for FOMC’s J.Powell, regarded as on the dovish side by investors.

Looking ahead, the ADP report is next on tap, with market consensus expecting the US private sector to have added 125K jobs in September. Further out, the ISM non-manufacturing is also due followed by the EIA’s weekly report on US crude oil inventories and the speech by St. Louis Fed J.Bullard (2019 voter, dovish).

US Dollar relevant levels

As of writing the index is losing 0.16% at 93.27 and a breach of 93.00 (10-day sma) would open the door to 92.96 (55-day sma) and finally 92.47 (low Sep.20). On the other hand, the next up barrier aligns at 93.91 (high Oct.2) followed by 94.03 (23.6% Fibo of the 2017 drop) and finally 94.14 (high Aug.16).