US Dollar extends the recovery to 92.50, ADP eyed

The greenback, in terms of the US Dollar Index, is trading on a better footing on Wednesday and is currently testing session tops around 92.50.

US Dollar looks to ADP, GDP

The index is advancing for the second session in a row so far today, recovering the ground lost after recording fresh cycle lows near 91.60 on Tuesday. The negative sentiment around the buck seems somewhat alleviated, as market participants appear to have digested the weakness post-Jackson Hole while the effervescence around US-NK has fizzled out a tad.

Today’s up move is reinforced by the rebound in yields of the key US 10-year benchmark, which are orbiting the 2.15% area after briefly testing the sub-2.09% zone on Tuesday, levels last seen in November 2016.

In the US data space, August's ADP report is next on tap followed by the second revision of Q2 GDP, the speech by FOMC’s J.Powell (permanent voter, centrist) and the DoE’s report on US crude oil inventories.

US Dollar relevant levels

As of writing the index is gaining 0.18% at 92.44 and a break above 92.99 (10-day sma) would target 93.19 (21-day sma) en route to 93.63 (high Aug.23). On the other hand, the next support aligns at 91.63 (2017 low Aug.29) followed by 91.51 (low Jan.15 2015) and finally 90.00 (psychological handle).