US Dollar turns negative near 94.50

The greenback, tracked by the US Dollar Index, has given away initial gains and is now back around the 94.55/50 area.

US Dollar weaker post-US data

The index faded the earlier spike to the vicinity of 94.90 after US Factory Orders have surprised markets to the downside during February, contracting at a monthly pace of 1.7%.

The Fed’s Labor Market Conditions Index, usually released after Payrolls, has followed suit, coming in at -2.1 vs. 1.5 expected and -2.5 previous.

Additionally, Boston Fed’s E.Rosengren has argued that a rate hike by the Fed appears more probable than market estimates. 

US Dollar relevant levels

The index is retreating 0.11% at 94.51 and a breakdown of 94.30 (2016 low Mar.31) would aim for 94.19 (monthly low Sep.18 2015) and then 93.83 (monthly low Oct.15 2015). On the other hand, the next hurdle aligns at 95.31 (23.6% Fibo of 98.59-94.30) followed by 95.78 (20-day sma) and finally 96.42 (high Mar.28).