US Dollar extends post-NFP rebound, inches back closer to 92.00 handle

   •  Investors digested Friday’s mixed US jobs report.
   •  March Fed rate-hike expectations lend support.

The US Dollar edged higher through the Asian session on Monday and recovered part of last week's losses as investors continue to reassess Fed rate hike expectation for 2018.

The USD Index, which measured the greenback's strength against a basket of major currencies, held around the 91.75-80 region and was seen extending its post-NFP rebound. 

The latest US monthly jobs report showed that the economy added 148K jobs in December, well below the 190K anticipated. Adding to this, data for October and November data were also revised lower to show 9K fewer jobs created than previously reported.

The buck was whacked lower as the market reacted to the weaker-than-expected headline figures but managed to quickly rebound in wake of a modest uptick in wage growth. Average hourly earnings rose 0.3% in the same month, resulting in 2.5% growth during the 12 months leading up to December, while the unemployment rate held steady at 4.1%. 

Despite a slight moderation, the jobs data did little to alter investors' expectations for a Fed rate hike move in March, with rebounding US Treasury bond yields extending some support and helped rebound from an initial dip. 

Investors now turn their attention to this week's US inflation figures and speeches from influential FOMC members for further clues on the timing of next Fed rate hike, which would eventually help determine the next leg of directional move.

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