US Dollar Index tumbles to 92.35, fresh 1-year low

The US Dollar Index printed a fresh 1-year low during the American session. Over the last hours the greenback dropped further against its European rivals and turned negative versus commodity and emerging market currencies. 

The DXY fell to 92.35, the lowest intarday level since June 2015 and currently strand at 92.45/50, down 0.40% for the day. 

The US dollar accelerated the decline in New York after comments from Fed’s Mester and following a rally of the euro. Cleveland Fed President Mester mentioned that there is a risk of overheating if interest rates remain too low and added that three rate hikes per year are appropriate to avoid that.

Fed's Mester: Factors in place for rise in US inflation

The rally of EUR/USD also pushed the DXY further to the downside. The pair reached levels on top of 1.1900 for the first time since January 2015. 

Employment data, not relevant for USD 

Earlie today, the US dollar remains practically unchanged following the release of labor market data. According to ADP, the private sector added 178K jobs, slightly below expectations. June data was revised higher from 158K to 191K. Now attentions turns to Friday, when the official employment report is due. Non-farm payrolls are expected to show a gain of 183K in July and the unemployment rate, to drop from 4.4% to 4.3%. 

US: Private sector employment increased by 178,000 jobs from June to July - ADP

DXY Levels to watch

To the upside, the immediate resistance is seen at 92.60 (Jul 31 low) followed by 93.00 (Aug 2 high) and 93.30 (Jul 31 high). On the flip side, support might lie at 92.30/35 (daily low), followed by the 92.00 handle and 91.80/85 (2016 lows).