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Non-Farm Payroll misses; USD retreats

Today's job report out of the US for August was disappointing. Non-Farm Payroll (NFP) data showed that 151K jobs were added in August. 
August: 151K
Forecast: 180K
Previous: 275K (revised up from 255K)
Also, average hourly earnings rose only 0.1% on the month.
August vs. July: 0.1%
Forecast: 0.2%
Previous: 0.3%
Finally, the unemployment rate remained the same at 4.9%.

The disappointing jobs data stirs up doubt about a rate hike this year. The lack of earnings growth reflects lack of inflation, which also discourages a rate hike. 

The market reacted by selling the USD. We should remember that the USD was up from last Friday because the market felt Yellen was hawkish. How far will the market walk back on the hawkish expectation?

USD Index

DXY 1H Chart

(click to enlarge)