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Forex – Dollar mixed after strong ADP data, pre-Fed

Published 11/03/2010, 08:58 AM
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Investing.com – The U.S. dollar was mixed against the other major currencies on Wednesday, after the release of significantly better-than-expected data on ADP non-farm payrolls and ahead of a critical announcement by the Federal Reserve.

During European afternoon trade, the greenback was up against the euro, with EUR/USD shedding 0.02% to hit 1.4032.

Earlier in the day, payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 43K in October, after falling by a revised 2K in September. Analysts had expected non-farm private sector employment to increase by 25K in October.

The greenback was also up against the Swiss franc and the yen with USD/CHF gaining 0.14% to hit 0.9807 and USD/JPY rising 0.34% to hit 80.91. Earlier Wednesday, official data showed that Swiss retail sales rose significantly more-than-expected in September.

But the greenback was down against the pound, with GBP/USD climbing 0.54% to hit 1.6126 after data showed that the CIPS/Markit U.K. services purchasing manager’s index rose unexpectedly in October to hit a 4-month high.

Elsewhere, the greenback was also down against its Canadian and New Zealand counterparts but up against its Australian cousin, with USD/CAD shedding 0.08% to hit 1.0073, NZD/USD gaining 0.66% to hit 0.7765 while AUD/USD slipped 0.10% to hit 0.9985.

Earlier in the day, official data showed that the number of Australian building permits issued in September tumbled unexpectedly to hit their lowest level in six months.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.04%.

Later Wednesday, the U.S. Federal Reserve was to make its November rate statement. The announcement was widely expected to unveil a fresh round of Treasury bond purchases designed to support the U.S. economic recovery.

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