Weaker US jobs data and lower oil prices reduce expectations for near-term Federal Reserve tightening, pressuring the USD.
The US Dollar Index (DXY) fell for a second straight session Wednesday, trading at 99.84 after failing to hold above 100.00 earlier in the week. Softening macroeconomic data, including a drop in JOLTS job openings to 7.359 million in June—below the 7.4 million forecast—weighed on the greenback. Factory orders also contracted 0.3% in June, missing expectations of a 0.2% gain.
The decline follows a downwardly revised May print of 7.537 million job openings and a 1.3% drop in factory orders. Lower oil prices and optimism over Iran war negotiations have further dampened bets on immediate Fed rate hikes, supporting a moderate risk-on tone.
Technical indicators suggest further downside, with the DXY eyeing two-month lows near 99.40. The Relative Strength Index hovers around 36, while the MACD remains below zero, reinforcing bearish momentum.