US Dollar Swings on NFP Report Beat, Unemployment Below 9%
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AUGUST 2020 NFP REPORT: US DOLLAR EDGES HIGHER AFTER NONFARM PAYROLLS BEAT
- US Dollar is trading slightly higher owing to a positive NFP report that topped market forecast
- Nonfarm payrolls increased by 1.3-million and the unemployment rate dropped to 8.4%
- Traders await the Wall Street opening bell to see if stocks can recoup prior session losses
The US Dollar is trading modestly higher with the DXY Index up by about 0.15% immediately after the release of August 2020 nonfarm payrolls data. The US labor market added 1.37-million jobs last month, which beat market estimates looking for 1.35-million job additions for the headline figure.
US DOLLAR INDEX PRICE CHART: 5-MINUTE TIME FRAME (04 SEP 2020 INTRADAY)
Perhaps most notable out of the latest NFP report is how the US unemployment rate dropped to 8.4%. Not only did the unemployment rate come in lower than consensus estimates, but it also has fallen below 10% for the first time since the economy was roiled by the coronavirus pandemic earlier this year.
The overall solid NFP report is likely helping provide a bid to the US Dollar as the ten-year Treasury yield creeps up above 66-basis points, but perkiness reflected by the DXY Index might be undermined by technical resistance posed by the 93.00-price level. Gold prices are trading lower by about 0.5% and probing a big support zone as US Dollar strengthening is likely keeping the precious metal under pressure.
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