USD/CHF pushes higher above parity mark post-ADP data
- Private sector employment in the U.S. grew more than expected.
- DXY pierces above daily consolidation channel on data.
- Manufacturing PMI and FOMC are awaited.
The USD/CHF pair, which struggled to rise above the critical parity mark since the beginning of the week, gained traction in the early NA session and advanced to a fresh 5-day high at 1.0024. As of writing, the pair was trading at 1.0022, adding 0.44% on the day.
Greenback boosted by employment data
Today's data released by the ADP showed that the private sector employment in the U.S. increased by 235K on a monthly basis in October following a 110K (revised from 235K) rise in September, beating the market estimate of 200K. Having struggled to sustain its bullish momentum in the last couple of days, the US Dollar Index jumped above mid-94s to renew its daily high at 94.70 as today's data ramped up the expectations of a strong NFP reading on Friday. At the moment, the index is at 94.68, gaining 0.25% on the day.
- US: Private sector employment increased by 235,000 jobs from Sep to Oct - ADP
Later in the session, the Markit and the ISM will be releasing their PMI data for the manufacturing sector in the U.S. However, the market reaction could remain subdued as investors are likely to focus on the FOMC meeting outcome.
- FOMC Preview: 7 major banks expectation from November meeting
Technical outlook
Karen Jones, Head of FICC Technical Analysis at Commerzbank, explains, "...last weeks high at 1.0039 guards 1.0100/08 the April and May highs and the 1.0145 78.6% retracement. Longer term this is the last defense for the 1.0335 January 2017 high. Slips should find support around.9813/.9834, the 200 day ma and the uptrend. Only failure at .9705, the mid October low, would target the .9553 June 30 low and potentially the .9421." September low”.