US Dollar index: bulls holding $90 post US-data

• ISM Prices Paid came in better while the Purchase Manager Index disappointed.

• The Non-Farm Payroll (NFP) is likely the major market mover at the end of the week. 

The US Dollar Index (DXY) is trading at around $90 virtually unchanged on Monday as market participants return to their desks after the long Easter weekend. Stock markets in most European countries, Canada, Australia and New-Zealand will only re-open on Tuesday while the foreign exchange markets stay open. 

Freshly released at 13:45 GMT, the US Markit Manufacturing PMI in March came in below expectation at 55.6 while previously forecast at 55.7. The data didn’t affect the buck negatively immediately after the release. Soon after at 14:00 GMT, the ISM Manufacturing PMI in March came below expectation at 59.3 versus 60 expected while the ISM Prices Paid in March accelerated to 78.1 from 74.2 in February while it was expected at 78.1. Finally, US Construction Spending in February came below expectation and came in at 0.1% versus 0.6% expected. DXY is holding firm so far.   

However, the main event this week for the US Dollar will likely be the Non-Farm Payroll scheduled on Friday. 

The current mixed sentiment on the greenback seen in early Monday trading was mainly attributed to the threat of trade wars. China said they would slap trade tariffs on imported pork and fruits coming from the United States of America, possibly reigniting a new wave of risk-off sentiment. 

US Dollar Index: 4-hour chart

DXY is trading above the 50, 100 and the 200-period simple moving average on the 4-hour chart.  last week saw the index jump from $89 to the $90 handle. Resistance is seen at $90.18 and $90.45 swing high while support is seen at 89.82 and 89.25 swing low.