US Dollar Steady, Factory Data Strong, But Markets Remain Cautious
The US dollar moved relatively stable in today's trading, after strengthening for two consecutive days. The market benchmark, the DXY (US Dollar Index), was in the range of 97.4–97.6, indicating that the dollar is still holding its ground despite losing momentum.
The main strength came from surprisingly positive US factory data. The Institute for Supply Management's manufacturing index for January rose to 52.6 from 47.9—returning to expansionary territory. This data led market participants to slightly reduce expectations for an imminent interest rate cut, which is usually supportive for the dollar.
However, the market also missed a key clue this week as the release of January's employment data was delayed due to the partial government shutdown. The Bureau of Labor Statistics stated that the release schedule would be updated once funding returns to normal—making dollar movements more sensitive to daily headlines.
In Asia, the dollar was strong against the yen. USD/JPY moved in the 155.4–155.7 range, reflecting a weaker yen and providing additional support for the dollar in this pair.
Technically, intraday markets typically see DXY support around 97.4 and resistance around 97.6–97.7. As long as the DXY remains above support, the dollar's bias remains "holding strong"; however, if it breaks below, there's greater room for correction, as the market could also return to risk-on (risk appetite increases).
Source: Newsmaker.id
