Lower US NFP estimates and the downbeat US ISM New Orders Index are responsible for the DXY’s fall.
The US ISM New Orders Index reflects the forward demand by the households.
Gold price ( XAU/USD ) is auctioning above the crucial support of $1,740.00. The precious metal has attracted bids as the US dollar index ( DXY ) has surrendered more than half of Wednesday’s gains. The DXY has tumbled on lower expectations for the US Nonfarm Payrolls (NFP) and the downbeat US ISM New Orders Index data released on Wednesday.
As per the market consensus, the US economy added 270k jobs in June, higher than the former release of 390k. However, the Unemployment Rate may remain stable at 3.6%. It is worth noting that lower additions to the labor market do not resemble a slowdown in the job market. The US employment level is optimal and has less room for more jobs. However, this might trim the confidence of the (Fed) in announcing extreme restrictive policy measures.
The declining 200-period ( ) at $1,787.75 adds to the downside filters. It is worth noting that the momentum oscillator, Indicator is displaying overbought signals. Also, the Moving Average is portraying exhaustion in the pullback move.
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