Correction: US ADP Employment Change 4-week average rises to 6.5K

FXStreet Team FXStreet

(This story was corrected on February 10 at 16:34 GMT to reflect that the 4-week average of the US ADP Employment Change didn't decline compared to the previous week. It rose to 6.5K, up from the 5K reported one week ago. The corrected version follows.)

ADP Employment Change 4-week average records a third consecutive expansion.
US Dollar Index remains rangebound near 96.85.

The 4-week average of the US ADP Employment Change rose to 6.5K on the four weeks ending January 24, up from 5K previously. This marked the third consecutive weekly expansion and the highest level since the week ending January 3.

The renewed acceleration in the four-week average suggests that hiring conditions may be firming at the margin, despite some recent data points to a weakening US labor market. Market participants continue to monitor these high-frequency labor indicators for early signals ahead of broader employment reports.

Market reaction

The US Dollar shows little reaction to the data. The US Dollar Index (DXY) remains little changed on Tuesday, hovering around 96.85, as traders await further catalysts for directional moves.

Economic Indicator

ADP Employment Change 4-week average

The preliminary ADP weekly estimate, released by Automatic Data Processing Inc, provides a four-week moving average of the latest total private-employment change in the US. Generally, a rise in the indicator has positive implications for consumer spending and stimulates economic growth. Therefore, a high reading is traditionally seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.

Why it matters to traders?

The ADP weekly report provides the change in private sector employment, offering the most current view of the labor market based on ADP's fine-grained, high-frequency data. Traders often consider employment figures from ADP, America's largest payrolls provider, as the harbringer of the Bureau of Labor Statistics release of Nonfarm Payrolls.

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FXStreet Team

FXStreet

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