DXY: ADP Employment, ISM Services – OCBC

The US Dollar (USD) fell after job openings disappointed while Fed’s Beige Book showed that economic activity was flat to slightly down in most districts, OCBC FX strategists Frances Cheung and Christopher Wong note.

Daily momentum is mild bullish

“On employment, levels held steady overall, though some firms are becoming more selective in hiring and less likely to expand their workforces, citing concerns about demand and uncertain economic outlook. It was also reported that candidates faced increasing difficulties and longer times to secure a job while firms felt less pressure to increase wage and salaries as competition for works eased and staff turnover has fallen.”

“On net, wage growth was reportedly modest, in line with the slowing trend described in recent reports. Focus shifts to ISM services and ADP employment tonight. We reiterate that USD should remain sensitive to job data this week given that Fed’s focus has shifted towards supporting labour market.”

DXY was last at 101.20. Daily momentum is mild bullish but RSI fell. Consolidative price action. Resistance at 101.82 (21-DMA), 102.20 (23.6% fibo retracement of 2023 high to 2024 low). Support at 100.50 levels.