US Dollar off highs, back around 93.65

The US Dollar index, which measures the greenback vs. a basket of its main rivals, is now returning to the 93.65/60 band after testing daily highs above 93.70.

US Dollar bid after data

Same as yesterday following the JOLTs upbeat report, the index (over?) reacted to the auspicious advanced readings from non-farm productivity and unit labor costs during the second quarter, up 0.9% and 0.6%, respectively. Of note, however, was the significant revision higher of the previous period in unit labor costs to 5.4% from 2.2%.

The buck is thus advancing for the second session in a row so far, testing the upper end of the weekly range around 93.60 and on its way to close the second consecutive week with gains after bottoming out in the 92.40 area (August 2).

However, cautiousness is expected to grow bigger among trader as we get closer to the release of July’s inflation figures tracked by the CPI (Friday), which will be the salient event for the buck this week.

US Dollar relevant levels

The index is gaining 0.19% at 93.66 and a break above 93.77 (high Aug.8/9) would aim for 93.83 (21-day sma) and then 94.11 (high Jul.26). On the flip side, the next support lines up at 93.16 (10-day sma) seconded by 93.12 *(low Aug.8) and finally 92.41 (2017 low Jul.31).