US Dollar deflates to 96.00 ahead of ADP

The greenback, measured by the US Dollar Index, has eased from yesterday’s tops and is now challenging the critical support at 96.00 the figure.

US Dollar now looks to ADP

The index has surrendered part of the weekly gains to the proximity of 96.40 (Tuesday), as the bullish sentiment surrounding the buck seems to have lost some vigour today.

Firmer expectations of a Fed’s rate hike by year-end plus auspicious results from the US docket and shrinking momentum in the risk-associated space have been sustaining the USD up move as of late, although the 96.30/40 region has proved once again to be a tough barrier to overcome.

Later in the session, USD will take centre stage in light of the release of the ADP report (166K exp.) followed by Trade Balance figures, Factory Orders and the ISM Non-Manufacturing.

US Dollar relevant levels

The index is losing 0.13% at 96.04 and a break below 95.61 (55-day sma) would aim for 94.98 (support line off 2016 low) and finally 94.44 (low Sep.8). On the other hand, the initial hurdle aligns at 96.50 (high Aug.5) ahead of 97.62 (high Jul.25) and then 98.59 (high Mar.3).