- Private sector employment grows less than expected in the U.S.
- Unit labor costs decline 1% in the second quarter.
- US Dollar Index stays near 95 ahead of PMI data.
The USD/CHF pair stays under a modest selling pressure and trades below in the early NA session as the greenback struggles to find demand following the dismal ADP employment report. At the moment, the pair is down 0.3% on the day at 0.9690.
According to the ADP, private sector employment in the United States increased 163K in August following July’s 217K (revised down from 219K) and fell short of the analysts’ estimate of 190K. Other data revealed that unit labor costs declined 1% in the second quarter and the nonfarm productivity rose 2.9% to come in slightly below the market consensus of 3%. The US Dollar Index, which slid below the 95 mark with the initial reaction, was last seen at 95.07, where it was down 0.04% on a daily basis.
Later in the session, the IHS Markit and the ISM will be releasing their non-manufacturing PMI data. Furthermore, FOMC member Williams is scheduled to deliver a speech.
Earlier in the day, the data released by the State Secretariat for Economic Affairs SECO revealed that the real-GDP in Switzerland expanded by 3.4% on a yearly basis in the second quarter to surpass the market expectation of 2.4%. Moreover, the first quarter’s reading got revised up to 2.9% from 2.2%.
Technical levels to consider
The initial resistance for the pair aligns at 0.9730 (200-DMA) ahead of 0.9800 (psychological level/20-DMA) and 0.9890 (50-DMA). On the downside, supports could be seen at 0.9650 (Aug. 31 low), 0.9580 (Apr. 16 low) and 0.9500 (psychological level).
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