US Dollar Index little changed after NFP and ISM data, holds to modest gains

• US Dollar rebounded sharply after NFP slide. 
• DXY remained above key support, hovering around 92.00.

The US Dollar recovered most of the losses that followed the release of the NFP. The recovery lost strength after the release of the ISM Non-Manufacturing report that came below expectations. 

After all the data, the US Dollar Index (spot) continued to trade around the 92.00 area, modestly higher for the day. The index dropped to test the 91.75/80 area after NFP bur rebounded sharply. It has been able to hold above that key level but the bearish tone still prevails. 

Regarding data, the Labor Department said that the US economy added 148K jobs in December, below the 190K estimated by market analysts. Average earnings rose 0.3% (as expected) while the unemployment rate remained at 4.1% (17-year low). Later, the ISM Non-Manufacturing PMI came in at 55.9, an unexpected decline from last month 57.4. 

DXY Levels to watch 

To the downside, the key support is the 91.75/80 zone, below that a bearish acceleration seems likely with a potential target at 91.45 followed by 91.00/05 (2017 lows). On the upside, immediate resistance might lie at 92.05/10 (daily high) followed by 92.25/30 (Jan 3 & 4 high) and 92.50.