Today ADP employment numbers were released from US for the month of August.
One might pose questions, why improved labor market, when headline ADP number was a miss.
There are two things to note even in the headline that,
- Job growth even if it hasn't lived up to expectations, has not deteriorated and addition of 190,000 in payroll is very good if not robust enough.
- Payroll number came better than last month's 177,000 job addition (revised down from 185,000).
Key highlights -
- Non-farm private sector employment grew at 190,000 in August, Median expectation was for 201,000. June payroll got revised by -8000 to 177,000.
- Small business sector hiring at 85,000, compared to 59,000 last month.
- Employment in franchise increased by 22,800.
- Mid-sized companies added 66,000 jobs.
- Large sector added 40,000 jobs.
- Manufacturing sector created 7,000 jobs compared to 2,000 last month
- 17,000 jobs were added in goods producing sector.
- Construction sector added 17,000 on payroll.
- Services sector employment remains robust as payroll added 173,000 people in May.
In spite of expectation miss and revise down in last month's employment number, Dollar was able to gain against Euro and Yen as overall gains remain robust.
FXCM US Dollar index is currently trading at 12045, with resistance around 12060 area and support around 12010 area.
