US Dollar falls to lows, closer to 90.00

• The index is losing the grip on Friday and challenges the low-90.00s.
• Rising risk aversion on US-China trade concerns weigh on USD.
• US Non-farm Payrolls missed estimates at 103K in March.

The US Dollar Index, which tracks the greenback vs. its main competitors, is now giving away its earlier gains and threatens to test the psychological support at 90.00 the figure.

US Dollar weaker on risk aversion

After climbing as high as the 90.60 region, or fresh 5-week tops, the index has quickly faded that advance and is now poised to challenge the critical support around the 90.00 neighbourhood.

Renewed sentiment towards the risk aversion seems to have woken up after President Trump’s Advisor L.Kudlow said there is no timetable for negotiations between the US and China and that the Chinese response to US trade actions has been so far unsatisfactory. Kudlow also added that China must open its market and lower its barriers.

Earlier in the session, US Non-farm Payrolls disappointed expectations in March at 103K, while the unemployment rate stayed put at 4.1% and the key Average Hourly Earnings - a gauge of inflation via wage pressures – expanded at an annualized 2.7% and 0.3% on a monthly basis.

Furthermore, today’s report from the US labour market, despite showing a robust health, might have tempered expectations of a more aggressive tightening cycle by the Federal Reserve, which is also weighing on the buck.

Closing the day, Chief J.Powell will speak on ‘Economic Outlook’.

US Dollar relevant levels

As of writing the index is down 0.23% at 90.22 facing immediate contention at 89.98 (10-day sma) seconded by 89.82 (low Apr.2) and then 88.94 (low Mar.27). On the upside, a break above 90.89 (38.2% Fibo of 95.15-88.25) would open the door to 90.93 (high Mar.1) and finally 91.00 (high Jan.18).