U.S. Dollar Rebounds After Strong ADP Private Payrolls Data
December 06 2017 - 4:37AM
RTTF2
The U.S. dollar bounced off from its early lows against its most
major counterparts in the European session on Wednesday, following
a data showing better than expected U.S. private sector employment
growth in November.
Data from payroll processor ADP showed that employment in the
U.S. private sector increased slightly more than expected in the
month of November.
ADP said private sector employment climbed by 190,000 jobs in
November after surging up by 235,000 jobs in October. Economists
had expected an increase of about 185,000 jobs.
The data serves as a prelude to all important nonfarm payrolls
data for November, due Friday.
Meanwhile, Republican leaders struggled to reach a deal to avert
government shutdown on Friday, as some Democratic lawmakers
threatened to vote against spending bills unless Congress addresses
their demands on funding priorities and protecting young
immigrants. House Republicans adjourned a vote on the temporary
spending measure to Thursday to resolve differences with
conservatives.
The currency dropped against its major counterparts in the Asian
session, with the exception of the pound.
The greenback climbed to 1.1800 against the euro, from a low of
1.1848 hit at 10:45 pm ET. If the greenback extends rise, 1.17 is
possibly seen as its next resistance level.
Data from Destatis showed that Germany's factory orders
increased unexpectedly in October.
New orders in manufacturing climbed 0.5 percent month-on-month
in October, following a revised 1.2 percent rise in September.
Orders were forecast to fall 0.2 percent.
The greenback rose back to 0.9895 against the franc, heading to
pierce a 2-week peak of 0.9904 hit at 6:30 am ET. The pair closed
Tuesday's deals at 0.9873. The next likely resistance for the
greenback is seen around the 0.995 region.
The greenback bounced off to 112.32 against the yen, from an
early 5-day low of 112.00. The greenback is seen finding resistance
around the 113.5 mark.
Moody's Investors Service retained the sovereign ratings of
Japan.
The credit rating was kept unchanged at 'A1' with 'stable'
outlook.
The greenback turned positive against the aussie following the
data, with the pair trading at 0.7580. This may be compared to a
5-day high of 0.7572 hit early in the Asian session. On the upside,
0.74 is likely seen as the next possible resistance for the
greenback.
The greenback rose slightly to 1.2683 against the loonie, from a
low of 1.2656 hit at 8:00 am ET. This may be compared to a 2-day
high of 1.2707 hit early in the Asian session. The greenback is
likely to locate resistance around the 1.28 zone.
Reversing from an early weekly low of 0.6917 against the kiwi,
the greenback rose back and was trading at 0.6891. Continuation of
the greenback's uptrend may see it challenging resistance around
the 0.67 mark.
Following a 1-week high of 1.3358 hit against the pound at 6:15
am ET, the greenback moved sideways in subsequent deals. At
Tuesday's close, the pair was valued at 1.3442.
Looking ahead, the Bank of Canada will announce its decision on
interest rate at 10:00 am ET. Economists expect the bank to keep
rate on hold at 1.00 percent.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Aug 2024 to Sep 2024
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Sep 2023 to Sep 2024