USD Softens as Weak Factory Orders and JOLTs Data Weigh on Dollar

The US dollar came under pressure during Tuesday's Americas session as key economic data disappointed expectations, shifting focus back to labor market softening. US June factory orders declined 0.3% against an expected gain of 0.2%, signaling continued weakness in the manufacturing sector. Additionally, JOLTs job openings came in at 7.359 million, slightly below the 7.400 million estimate and lower than the prior month's reading, reinforcing concerns about a cooling labor market. Despite the softer macro backdrop, risk sentiment found support from renewed enthusiasm around artificial intelligence equities, which helped stabilize broader market sentiment and limited safe-haven demand for the dollar. On the geopolitical front, Secretary Rubio noted progress on reopening the Strait, easing some supply-chain and energy-related concerns that had previously supported the greenback. Near-term, traders will monitor whether continued labor market deterioration pressures the Federal Reserve toward a more dovish stance. Key support for the DXY sits near recent lows, while resistance remains at the prior session's highs. The combination of weak data and improving risk appetite suggests near-term headwinds for the dollar.