DXY Breaks Above 99.00 as Strong US Jobs Data Boost Rate Hike Bets

The US Dollar Index (DXY) strengthened above 99.00 in early Asian trading hours on Monday, driven by robust US jobs data that boosted Fed rate hike bets.

Data released by the US Bureau of Labor Statistics showed Nonfarm Payrolls climbed by 162K in August, exceeding market consensus of 56K. The Unemployment Rate held steady at 4.1% during the same period.

Traders moved to price in a roughly 58.3% probability that the Federal Reserve will hike rates this month following the stronger US jobs data, according to the CME FedWatch tool. The index is now positioned to potentially face resistance at the Bollinger middle band around 99.35.