Although the US economic data on Wednesday was published with a declining reading, the US dollar managed to show an excellent performance at the opening of May trading yesterday.
The indicators are not good for the US labor sector when the ADP private employment report showed a very weak increase for April, which was only 62,000 compared to the forecast of 114,000.
This follows the JOLTS report last Tuesday which came with a slow figure.
Adding to the concerns, the Gross Domestic Product (GDP) data report for the preliminary reading was -0.3% compared to the expected 0.2%, indicating a contraction in US economic growth for the first quarter of 2025.
This proves the prediction of many parties that the tariffs implemented by President Donald Trump are indeed 'hurting' his own country's economy.
Examining the inflation component, which is the Federal Reserve's (Fed) favorite indicator, the PCE price index that measures US personal consumption spending in March recorded 0.0% compared to the weak forecast of 0.1%.
Overall, the US data readings did not bode well for the world's largest economy and investors remained cautious at the end of the week awaiting the US NFP jobs report in the last trading session.
However, amid the pressure, the US dollar managed to buck the trend to trade strongly on Thursday, supported by recovering market sentiment.
Investors were optimistic about the development of the US-China tariff war as both sides began to ease tariffs on some imported goods.
After denying this earlier, China's Ministry of Commerce signaled that it was ready to hold talks following Washington's repeated 'persuasion' for tariff talks, but hoped officials would show sincerity towards Beijing.
