US ADP private sector jobs data fell below expectations In July, rising by 178K against forecasted 185K. June’s figure has been revised higher to 191K from 158K.
Despite weaker than expected reading in July, private sector employment remains strong and consistent with strengthening labor market.
The figure is usually used as an indication for US non-farm payrolls data (due on Friday and forecasted at 181K in July, below previous month’s release at 222K), but not as very reliable guide for the government jobs report.
The US dollar did not show significant reaction on data and stayed within narrow range against the most of major counterpart, after release, but gained traction against Japanese yen.
The USDJPY pair moved higher after the US data and is looking for renewed attempt at important 111.00 barrier on extended shorts squeeze.
The greenback showed modest gains against Canadian dollar while EURUSD and GBPUSD pairs remained in quiet mode, awaiting the markets to digest data.
Precious metals were lower after US private jobs data, as solid jobs numbers pointed to strength of the US labor sector which could be supportive factor for Fed for another rate hike this year.