US Dollar fades the uptick, challenges the 101.00 handle

The US Dollar Index – which gauges the greenback vs. its main rivals – has now returned to the 101.00 neighbourhood, coming down from a failed attempt to advance further north of 101.20.

US Dollar offered after Payrolls

The index has rapidly retraced the bullish attempt to the vicinity of 101.20 following the monthly report on US labour market elaborated by the BLS.

In fact, Non-farm Payrolls saw the economy adding nearly 180K jobs during November, a tad above initial estimates, and the jobless rate ticking lower to 4.6% from October’s 4.9%.

However, the critical Average Hourly Earnings dropped 0.1% inter-month, pouring cold water over expectations of a sustainable pick up in US inflation wages.

In the meantime, DXY is so far closing the first week with losses after three consecutive advances, including a fresh 2016 top near 101.20 recorded on November 24, with a period of consolidation likely to follow ahead of the FOMC meeting on December 14.

US Dollar relevant levels

The index is retreating 0.04% at 100.98 facing the next support at 100.67 (low Nov.28) followed by 100.41 (20-day sma) and finally 99.38 (low Nov.14). On the other hand, a break above 102.19 (monthly high Apr.2003) would open the door to 102.68 (monthly high March 2003).