Upbeat ADP Private Payrolls Data Buoys Dollar
October 31 2018 - 6:20AM
RTTF2
The U.S. dollar was higher against its key counterparts in the
European session on Wednesday, as U.S. private sector employment
increased more than forecast in October, bolstering hopes for a Fed
rate hike in December.
Data from payroll processor ADP showed another significant
increase in employment in the U.S. private sector in the month of
October.
ADP said private employment jumped by 227,000 jobs in October
after surging up by a downwardly revised 218,000 jobs in
September.
Economists had expected an increase of about 189,000 jobs
compared to the addition of 230,000 jobs originally reported for
the previous month.
The data serves as a prelude to all important jobs data due on
Friday. Economists expect the economy to add 193,000 jobs in
October with an unemployment rate of 3.7 percent.
The currency held steady against its major rivals in the Asian
session, with the exception of the yen.
The greenback appreciated 0.4 percent to 1.0072 against the
franc, a level unseen since May 2017. This follows a low of 1.0034
hit at 4:45 am ET. If the greenback rises further, it may challenge
resistance around the 1.02 level.
The greenback rose back to 113.27 against the yen, just few pips
short of a new 3-week high of 113.33 touched at 9:00 pm ET. The
greenback is seen finding resistance around the 115.00 region.
The Bank of Japan maintained its monetary stimulus, as widely
expected.
The policy board of the BoJ decided to purchase government bonds
so that the yield of 10-year JGBs will remain at around zero
percent.
The greenback added 0.4 percent to a 2-1/2-month high of 1.1316
against the euro, after falling to 1.1360 at 4:45 am ET. The pair
was valued at 1.1343 when it ended deals on Tuesday. The greenback
is likely to find resistance around the 1.12 level.
Flash data from Eurostat showed that Eurozone inflation
accelerated in October largely on higher energy prices.
Inflation rose to 2.2 percent in October from 2.1 percent in
September. The rate came in line with expectations.
The greenback reversed from an early low of 1.2780 against the
pound, rebounding to 1.2733. On the upside, 1.26 is likely seen as
the next resistance level for the greenback.
Survey by market research firm GfK showed that UK consumer
confidence weakened as expected in October.
The consumer sentiment index dropped to -10 in October from -9
in September. The reading came in line with expectations.
Extending early rally, the greenback advanced to 0.6528 against
the kiwi. At yesterday's close, the pair was worth 0.6553. Next key
resistance for the greenback is seen around the 0.64 area.
The greenback bounced off to 1.3140 against the loonie and
0.7080 against the aussie, from its early lows of 1.3105 and
0.7107,respectively. The next possible resistance for the greenback
is seen around 1.33 against the loonie and 0.69 against the
aussie.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Mar 2024 to Apr 2024
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Apr 2023 to Apr 2024