US Dollar drops to 92.70 on data, session lows

The greenback, in terms of the US Dollar Index, is losing momentum following the release of more US data and has dropped to fresh daily lows in the 92.70/65 band.

US Dollar offered on data

Sellers are now clustering around the index after US ISM non-manufacturing came in below expectations in July at 53.9 vs. 57.0 initially forecasted.

On the brighter side, Markit’s services PMI surpassed consensus at 54.7 for the last month and headline factory orders expanded at a monthly 3.0% during June, also bettering prior surveys.

However, the greenback paid little-to-nil attention to today’s releases, as market participants stay wary of tomorrow’s non-farm payrolls, where consensus sees the economy to have added 183K jobs during July.

The broader picture for USD remains bearish nonetheless, as US politics keep weighing on the already deteriorated sentiment, aggravated at the same time by rising speculations that the Fed could pause its tightening cycle in the next months.

US Dollar relevant levels

The index is losing 0.09% at 92.67 facing the next support at 92.41 (2017 low Jul.31) seconded by 91.88 (2016 low May 3) and finally 91.50 (low Jan.15 2015). On the other hand, a breakout of 93.29 (10-day sma) would aim for 94.11 (high Jul.26) and then 94.26 (21-day sma).