- U.S. ADP Employment Survey: 189K vs. 225K forecast, 214K previous
- U.S. Markit Manufacturing PMI: 55.7 vs. 55.3 forecast/previous
- U.S. Construction Spending: -0.1% vs. -0.1% forecast, -1.7% previous
- U.S. ISM Manufacturing: 51.5 vs. 52.5 forecast, 52.9
The U.S. trading session started off with a weaker-than-expected read from the ADP employment survey numbers. Forex traders tend to view this report as a indicator of what we may see from the following U.S. monthly Non-farm payrolls number, and with the number coming in below 200K for the first time since last Summer, USD bulls did not take it well.
We also got mixed manufacturing sentiment data from the U.S. with the Markit survey coming in above expectations/previous reads while the Institute for Supply Management (ISM) manufacturing survey came in below expectations, and continuing the steady trend lower since hitting a reading of 59 back in November.
All combined, it was a choppy session for the Greenback with EUR/USD gyrating between 1.0730 – 1.0800 during the economic releases, but with a slight bias to the downside as seen by the fall in USD/JPY from 120.20 to 119.45, likely because of the ADP read signaling a potentially weak NFP number.
The euro also saw steady directional price action during the U.S. session in the form of more selling, likely on recent developments from the ongoing Greek debt story. With Greece weeks away from running out of cash and support payments frozen until it reforms are acceptable to the IMF, it’s possibly euro traders are getting nervous and lightening up on euro positions. EUR/GBP hit highs around .7300 before falling to .7250 at the U.S. session close.
Asia session data came in extra early today, and the most notable of the group is the Australian trade balance data coming in better-than-expectations but below last month’s read (AUD -1.26B vs. AUD -1.3B forecast, AUD -0.98B previous). The Aussie took a tumble on the news as AUD/USD dipped from .7605 to .7574, but it was short-lived and quickly faded. The news is still fresh, so we’ll see where the market takes this report, as well as the rest of the fresh Asia data for the next few hours.
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