916,000 was the number of jobs created by the US economy in March. This figure not only smashed the 660,000 forecast but was the strongest employment growth in seven months. The unemployment rate fell to 6% from 6.2% previously while average hourly earnings dropped -0.1% below expectations of 0.2% mom. Overall, today’s jobs report is certainly encouraging and suggests that economic activity is picking up in the world’s largest economy. As the vaccine distribution builds momentum and Biden’s $1.9 trillion stimulus offers support for businesses, the outlook for the US labour market continues to brighten.
Looking at the charts, the Dollar Index (DXY) remains bullish on the daily timeframe. There have been consistently highs and higher lows while the MACD trades above 0. A solid weekly close above 93.00 could open the doors towards 93.47.
It may be wise to keep an eye on the the Relative Strength Index (RSI) which is trading near overbought levels. This may invite bears to attack the DXY if 93.00 proves to be reliable resistance. A decline towards 92.50 could be on the cards if this scenario plays out.
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