US Greenback (USD) turned sharply decrease on launch of payrolls report final Fri. Most USD/Asean FX was additionally buying and selling decrease this morning, catching up on the USD pullback. DXY was final at 98.80 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong notice.
Dangers skewed to the draw back
“THB, PHP and MYR gained over 1% vs. USD. US NFP headline print of 73k missed expectations (104k) whereas downward revisions for the final 2 months (-258k) caught markets unexpectedly. However, this alongside the hunch in ISM employment (43.4) level to softening labour market.”
“Markets had been simply positioning for a possible return of US exceptionalism commerce, however the tender labour market print means that the return of US exceptionalism commerce could be a again burner. Fed fund futures are actually suggesting {that a} Sept charge minimize shouldn’t be dominated out. Focus this week on ISM companies information (Tuesday); preliminary jobless claims (Thursday) and Fedspeaks.”
Bullish momentum exhibits indicators of fading whereas RSI fell. Dangers skewed to the draw back. Assist at 98.30 (21, 50 DMAs), 97.20 ranges. Resistance at 100 (100 DMA), 100.50 ranges.
