- The DXY is trading defensively near 96.00.
- The US ADP report surprised to the upside in December.
- Investor attention now shifts to the FOMC Minutes.
The US Dollar Index (DXY), which measures the dollar against a group of its main rivals, is trading defensively and near the 96.00 zone on Wednesday.
The US dollar index attentive to the FOMC
The index remains unable to reverse the resurgence in selling pressure thus far and is trading at the lower end of the daily range and at a crying distance from the key criterion of 96.00.
Lack of conviction in US yields amid mixed performance along the curve and investors’ bias towards the risk space keep the dollar in the spotlight despite the auspicious results of the December ADP report.
In fact, the US private sector added 807,000 jobs last month, beating estimates for a gain of 400,000 and more than 505,000 in November.
Later in the session, Markit will release its final services PMI for the month of December and the FOMC will publish its Minutes from the last meeting.
Technical levels
Now, the index is retreating 0.30% to 95.99 and a break above 96.46 (weekly high on Jan 4) would open the door to 96.90 (weekly high on Dec 15, 2021) and finally 96.93 (high on Jan 24). November 2021). On the other hand, the next descending barrier emerges at 95.57 (monthly minimum of December 31, 2021) followed by 95.51 (weekly minimum of November 30, 2021) and then 94.96 (weekly minimum of November 15, 2021).
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