US ADP reading rose more than expected
Weekly US jobless claims decline
The NFP report is the focus
The greenback traded not far from a 1-month high after getting support from an upbeat US ADP jobs data reading.
Looking at data released in the New York session, private sector employment was reported to have increased by 235,000 in December, well above expectations for an increase of 150,000.
Additionally, a note in the US jobless claims report showed a drop to a 3-month low last week although the reading slightly missed expectations.
This indirectly increased investors' hopes to see a stronger reading in the NFP jobs report in the New York session today.
However, initial market expectations were seen as somewhat subdued with a decline in job growth of 200,000 from the previous 263,000, but the unemployment rate remained low at 3.7%.
Against a basket of major currencies, the dollar index jumped 0.9% to 105.27 after the data was published. It is currently trading around the price of 105.13 in the Asian session.
Other major currency reactions saw the euro slide to a 3-week low, while the pound sterling slipped to its weakest level in more than 1 month.
Meanwhile, commodity-related currencies such as the Aussie, New Zealand and Canadian dollars also depreciated amid the strengthening of the US dollar.
Like the USD, Canadian dollar investors are also looking ahead to the release of Canadian jobs data tonight which is expected to show the labor market continued to weaken in December after a series of interest rate hikes by the central bank.
