ADP Non-Farm Payrolls shows a gain of only 156K jobs in April. In addition, the data for March was slightly revised to the downside: 194K instead of 200K initially reported. Jobs were the shining light in the US economy and this light shines a bit less now.
The greenback goes down across the board.
Currency reaction to ADP NFP
- EUR/USD advances to 1.1520, managing to re-settle above the round 1.15 level.
- GBP/USD bounces to 1.4530 despite weak construction PMI
- USD/JPY is getting further away from 107, and to the downside.
- USD/CAD is falling down, dipping below support at 1.2750.
- AUD/USD is making an attempt to regain 0.75.
- NZD/USD is around 0.69
ADP NFP Background
The private sector jobs report by Automated Data Processing (ADP) was expected to show a gain of around 196K in April, similar to 200K in March. The ADP NFP serves as a hint to the official publication coming out on Friday.
The US dollar continued its recovery path towards the publication. The greenback had a Turnaround Tuesday.
There is another important NFP hint today: the ISM Non-Manufacturing PMI: the services sector report provides an interesting picture of the US economy. The employment component serves a more specific indicator towards the jobs report on Friday.
We will also get the trade balance, unit labor costs and productivity data from the US.
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