U.S. Dollar Firms On Strong ADP Data
January 05 2023 - 05:09AM
RTTF2
The U.S. dollar was higher against its major counterparts in the
New York session on Thursday, as the nation's private sector
employment rose much more than expected in December, supporting
expectations for further interest rate hikes from the Federal
Reserve in the future.
Data from the payroll processor ADP showed that private sector
employment jumped by 235,000 jobs in December after surging by an
upwardly revised 182,000 jobs in November.
Economists had expected employment to jump by about 150,000 jobs
compared to the addition of 127,000 jobs originally reported for
the previous month.
Investors digested minutes from the Fed's December meeting
showing that policymakers supported keeping interest rates higher
for longer for some time in the future.
Fed officials cautioned against loosening policy too soon, the
minutes indicated, and dashed hopes for rate cuts later this
year.
The greenback was up against the euro and the franc, at 1.0547
and 0.9345, respectively. The currency is seen finding resistance
around 1.03 against the euro and 0.96 against the franc.
The USD/JPY pair reached a 1-week high of 133.76. The greenback
is likely to test resistance around the 135.00 area.
The greenback appreciated against the pound, hitting a 2-day
high of 1.1911. The greenback may locate resistance around the 1.16
level.
The greenback rebounded to 1.3548 against the loonie, off its
early more than a 4-week low of 1.3470. Against the aussie, it
edged up to 0.6766. The next likely resistance for the greenback is
seen around 1.37 against the loonie and 0.66 against the
aussie.
The greenback gained ground against the kiwi and touched a 2-day
high of 0.6230. Should the greenback strengthens further, 0.61 is
found as its resistance level.
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From May 2023 to Jun 2023
AUD vs US Dollar (FX:AUDUSD)
Forex Chart
From Jun 2022 to Jun 2023