US Dollar Waits on Key Manufacturing Data
The US Dollar (USD) is holding steady on Monday, following a quiet weekend with minimal geopolitical influence. However, a busy week of economic data releases looms, including the highly anticipated Nonfarm Payrolls report on Friday.
Market Focus:
- Manufacturing PMI Surveys: Today's focus is on the final reading of the S&P Global Manufacturing PMI and the Institute for Supply Management (ISM) Manufacturing PMI, both gauging the health of the US manufacturing sector.
Technical Analysis (USD Index):
- Consolidation Phase: The DXY is currently stuck in a consolidation range on the weekly chart, with lower highs and higher lows.
- Potential Breakout: Analysts anticipate a breakout from this consolidation phase this week, triggered by the upcoming economic data releases.
- Upside Resistance: A break above the 105.00 level (around the 55-day SMA) could lead to further gains towards 105.52 and 105.88.
- Downside Support: The 200-day and 100-day SMAs (around 104.4) act as crucial support levels. A break below this zone could trigger a decline towards 104.30 and potentially lower.
Overall:
The US Dollar is on hold as investors await key economic data, particularly the Nonfarm Payrolls report. The direction of the USD will depend on the incoming data and its impact on Fed rate cut expectations. A strong manufacturing PMI could bolster the USD, while weak figures might increase bets on a September rate cut.