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2 Oct 2013
US Dollar Index testing lows around 80.00
FXstreet.com (Edinburgh) -The selling pressure intensifies around the greenback on Wednesday, dragging the US Dollar index to another test of the key support at the 80.00 handle.
DXY eyes on ADP, shutdown
Data wise, the USD gained some traction after the improvement from the ISM manufacturing on Tuesday, although it remains submerged into the increasing uncertainty surrounding the current administrative paralysis in the federal Government. Ahead in the day, the ADP report is due. Prior surveys expect the US private sector to have created 180K jobs during September, a tad higher than August’s 176K. Strategist Richard Franulovich at Westpac assessed, “The weakness in the USD vis-a-vis some simple cross market signals coincides with the sudden surge in the cost of insuring US debt as the risks of a government shutdown and more importantly default/downgrade around failure to raise the debt ceiling emerged… as long as the US debt ceiling remains unresolved and the cost of insuring US debt remains elevated the USD is likely to struggle vs. fellow core currencies”.
DXY levels to consider
The index is now losing 0.05% at 80.12 and a break below 79.49 (low Feb.6) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012). On the upside, the first hurdle aligns at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).
DXY eyes on ADP, shutdown
Data wise, the USD gained some traction after the improvement from the ISM manufacturing on Tuesday, although it remains submerged into the increasing uncertainty surrounding the current administrative paralysis in the federal Government. Ahead in the day, the ADP report is due. Prior surveys expect the US private sector to have created 180K jobs during September, a tad higher than August’s 176K. Strategist Richard Franulovich at Westpac assessed, “The weakness in the USD vis-a-vis some simple cross market signals coincides with the sudden surge in the cost of insuring US debt as the risks of a government shutdown and more importantly default/downgrade around failure to raise the debt ceiling emerged… as long as the US debt ceiling remains unresolved and the cost of insuring US debt remains elevated the USD is likely to struggle vs. fellow core currencies”.
DXY levels to consider
The index is now losing 0.05% at 80.12 and a break below 79.49 (low Feb.6) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012). On the upside, the first hurdle aligns at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).