The U.S. Dollar remained the strongest major currency so far this week, as the DXY index continued rising in today’s session and is currently trading in the 95.40 – 95.45 region. The DXY index is showing considerable support in the 95.00 area with initial resistance at 95.50, however the 96.00 level could be reached with a breakout above 95.55.
Supporting the rise in the Greenback was the ADP Non-Farm Employment Change, which increased by +230K jobs last month compared to an expected +185K, while ISM Non-Manufacturing PMI printed favorably at 61.6 versus a consensus of 58.0.Elsewhere, the Euro remained under pressure from a possible credit downgrade for Italy due to the nation’s recently-announced fiscal stimulus plan. Earlier this week, the United States announced on Tuesday that an agreement with Canada had been reached in a preliminary trade deal called the U.S., Mexico, Canada Agreement or USMCA. Also on Tuesday, the RBA left its benchmark Cash Rate unchanged at 1.50%, as was widely expected, and the RBA’s Rate Statement indicated a neutral stance and that it was in no hurry to raise interest rates.
Thursday’s highlights include the Australian Trade Balance and Canadian Ivey PMI respectively expected out at 1.43B and 62.3. The week concludes with Friday’s U.S. Non-Farm Payrolls, the Unemployment Rate and Average Hourly Earnings releases, due out at +185K, 3.8% and 0.3%, as well as Australian Retail Sales expected at +0.3% and the Canadian Employment Change and Unemployment Rate for which the consensus is +25K and 5.9% respectively.
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