Dollar Index (DXY), Daily

Fundamental

The dollar had a volatile day due to weak labor market data but better PMIs. The Aug ADP Employment Change fell to 99k (cons. 145k, prev. revised to 111k from 122k). The final Unit Labor Costs for 2Q were revised to 0.4% from 0.9% QoQ SAAR, showing a wage inflation slowdown.
However, the dollar rebounded briefly with upward revisions of Aug Services and Composite PMIs.

Technical

DXY extended its downturn and tested the 101.00 level. The trendline failed to hold the index, and the diverging bearish EMAs sent bearish signals.
If DXY fails to climb above the trendline, the index may extend its downtrend to 100.50.
Conversely, if DXY closes above the trendline and both EMAs, the index could gain upward momentum toward 101.80.