ADP employment preview

ADP employment data to be released at 13:15 GMT is today's most vital dockets from US to be watched by market participants. This is part of the key data ahead of September FOMC,

What is ADP employment?

• The report is a measure of non-farm private sector employment which is obtained by utilizing an anonymous subset of roughly 400,000 U.S. businesses which are clients of ADP.

• This data is a very good measure of employment strength of the economy and a good precursor of Nonfarm payroll data.

Previous performance -

• Non-farm private sector employment grew at 200,000 in September. In August payroll grew by 177,000.
• Small business sector hiring at 37,000.
• Employment in franchise increased by 33,000.
• 15,000 jobs were lost in manufacturing sector.
• 12,000 jobs were added in goods producing sector.
• Construction sector added 35,000 on payroll.
• 15,000 jobs were added in financial activities.
• Services sector is main job provider. Payroll added 188,000 people in September.

Expectation Today -

• Headline number is expected to decline to 180,000 as per median estimate.

Market Impact -

• Any gain above 200,000 will be considered to be very good and Dollar might gain some momentum. However large sustained push unlikely ahead of NFP report Friday.
  
• Data below 160,000 likely to give rise to concerns regarding US economic prowess and might lead to risk aversion as well as slide in Dollar.

FXCM US Dollar index is currently trading at 12050. Resistance remains at 12070 area, while support around 12000.