Stronger ADP Non-Farm Employment bolsters US Dollar

AUD / USD

Expected Range: 0.7450 – 0.7600

The Australian Dollar has once again failed to hold onto the 76c handle and has suffered at the hands of an appreciating US Dollar. The local unit touched 0.7609 in the afternoon but with no local data releases yesterday to support the Aussie the unit began to drag lower through European and US trade to touch an eventual low of 0.7529, a level not witnessed since January 30th. Assisting Greenback strength was a bullish U.S ADP number, the private sector recorded that 298,000 jobs were added to the private-sector in February, the most in many years. AUD/EUR and AUD/JPY also lower at 0.7140 and 86.10.  The economic calendar for Australia remains light for the rest for the week, with only Home Loans due out tomorrow.  

NZD / USD

Expected Range: 0.6850 – 0.6980

The New Zealand Dollar has slipped to a two-month low overnight of 0.6904 on the back of a rising US Dollar index. Intraday economic data released didn’t really move the NZD/USD pair, a report showed that Manufacturing volumes fell 1.8% in the December quarter which was led by lower by falls in meat and dairy. Over in the US, economists had predicted that US companies would add 183,000 jobs to the private sector however the ADP reading came in at a staggering 298,000 well above expectations, construction and manufacturing were the leading sectors. The number firms expectations of a US Federal Reserve rate hike next week. Further downside risk is on the cards with 0.6860 seen as the next support level.  

GBP / AUD

Expected Range: 1.6050 – 1.6250

The Great British Pound received no favours overnight from UK’s Annual budget report as the downward spiral continued for a third consecutive day and saw seven week lows. The cable cross flatlined during the Asian session keeping its head above 1.2210 before the selloff continued during the European session overnight, reaching an intraday low of 1.2140. Chancellor Philip Hammond released his first Budget providing improved growth forecasts of 2% for the year, believing it will put the UK in a strong position ahead of their exit from the European Union. Despite the short term outlook Chancellor Hammond expects the growth rate to be revised downwards in 2018 and beyond. That along with a stronger Non-farm employment reading in the United States continued to put a dampener on the Pound. Sterling is currently trading at 1.2170 on open against the US Dollar.

USD, EUR, JPY

Strong numbers out of the United States overnight as 298,000 private sector jobs were added for the month of February in the latest ADP Non-Farm employment figures. The announcement has all but sealed a March rate hike by the United States Federal reserve as Markets have priced in a 90% probability of a hike next week based on current futures pricing. The U.S Dollar index hit a weekly high of 102.10 and up 0.27% as it continues to benefit from a stronger economy. EUR/USD continued to slide and saw an intraday low of 1.0530. Attention turns to the European Central Bank this evening where it is widely expected that there were be no changes in monetary policy by ECB President Mario Draghi.