United States Dollar Index sits near March 2025 highs, above 102.00 ahead of US NFP

The US Dollar Index (DXY) has been climbing steadily, reaching near its highest level since April 2025 and trading above the 102.00 mark during the Asian trading session on Friday. Traders are now focusing on the upcoming US Nonfarm Payrolls (NFP) report, which is expected to show a slowdown in job growth to 90,000 in September, down from 162,000 in the previous month.

Additionally, the Unemployment Rate is anticipated to remain at 4.1%. The release of the Average Hourly Earnings could offer further insights into the Federal Reserve's (Fed) future policy direction, especially with reduced expectations of a rate hike in October. Meanwhile, the Institute of Supply Management reported a 9th consecutive month of economic expansion in the manufacturing sector, with rising raw material prices and oil-inflated inflation pressures.

Geopolitical tensions between the US and Iran also continue to bolster the safe-haven Dollar, while the DXY maintains strong performance above its 200-day Simple Moving Average and a key horizontal support barrier. Technical analysts suggest bulls may test the next resistance level near 102.65-102.70 before targeting the 103.00 mark.