USD slips after softer US data – OCBC

The US Dollar (USD) drifted lower after weak ADP and ISM services prints, while broader risk sentiment stayed supported. DXY was last seen at 98.90 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Risk sentiment firm as equities, crypto climb up

"USD drifted lower overnight amid softer US data print. ADP employment printed -32k (vs. 10k expected) while ISM services prices paid, new orders surprised to the downside. Meanwhile risk sentiment stays supported, with equities and crypto complex on firmer footing."

"Daily momentum remains mild bearish while RSI fell to near oversold conditions. Some consolidation with slight bias to the downside likely. Support at 98.40/60 levels(100 DMA, 38.2% fibo). Resistance at 99.10 (50 DMA, 50% fibo retracement of May high to Sep low), 99.50/70 levels (21, 200 DMAs, 61.8% fibo), 100.6 (76.4% fibo). Day ahead challenger job cuts report."