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USD steadies after recent drop as ADP data nears

Markets are watching for ADP job growth to slow to 68,000, with services PMI and ISM non-manufacturing forecasts also set to shape short term Fed expectations.

Reported · Written up by our desk · Major Pairs

The US dollar has shifted into consolidation versus most major currencies after a sharp selloff last week, with traders focusing on fresh US macro signals, Action Forex reports. USD/JPY shows a moderate rebound while the market awaits the preliminary ADP private-sector employment report.

Forecasts call for job growth to fall to 68,000 from 98,000 the prior month. Action Forex says a weaker-than-expected ADP reading could increase pressure on the dollar by boosting expectations for a more dovish Federal Reserve stance, while a stronger print could support the currency ahead of official US labor market data.

Attention is also on US services indicators. Markets expect the preliminary S&P Global Services PMI to improve to 53.6 and the ISM Non-Manufacturing Index to rise to 54.5, with stronger readings potentially offsetting any softness in ADP.

The article also highlights near-term price levels: USD/JPY fell more than 500 pips after the Fed meeting, then rebounded toward 158.00 after testing support at 155.30, potentially extending toward 158.70 to 159.40 if resistance is broken. For USD/CAD, the pair retested support near 1.4000 and formed a bullish harami after a rebound, with technical targets cited around 1.4130 to 1.4170, though weaker data could bring renewed pressure back to 1.4000.

Latest closeUSD/JPY 157.75 ▲0.1%

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