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US Dollar Rebounds After Strong ADP Private Payrolls Data

CANBERA (Alliance News) - The US dollar bounced off from its early lows against its most major ...

Alliance News 6 December, 2017 | 2:37PM
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CANBERA (Alliance News) - The US 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 US private sector employment growth in November.

Data from payroll processor ADP showed that employment in the US 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% month-on-month in October, following a revised 1.2% rise in September. Orders were forecast to fall 0.2%.

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%.

Copyright RTT News/dpa-AFX

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