U.S. Dollar Falls Amid Weak ADP Data

(RTTNews) - The U.S. dollar came under pressure during the European session on Wednesday, as a slowdown in the nation's private sector job growth in March heightened worries about a recession.

Data from payroll processor ADP showed that U.S. private sector employment increased less than expected in March.

ADP said private sector employment rose by 145,000 jobs in March after climbed by an upwardly revised 261,000 jobs in February.

Economists had expected private sector employment to advance by 200,000 jobs compared to the addition of 242,000 jobs originally reported for the previous month.

A separate report from the Commerce Department showed the U.S. trade deficit widened by more than expected in the month of February, as exports slumped by more than imports.

U.S. treasury yields dropped, with the benchmark yield on the 10-year note touching 3.298 percent. Yields move inversely to bond prices.

Traders also look ahead to the release of the Labour Department's closely watched monthly jobs report on Friday.

Economists expect the report to show employment increased by 240,000 jobs in March after an increase of 311,000 jobs in February. The unemployment rate is expected to hold at 3.6 percent.

The USD/JPY pair fell to a 1-week low of 130.91. The pair was worth 131.69 when it ended deals on Tuesday. The greenback is seen finding support around the 128.00 mark.

The USD/CHF pair touched 0.9005, its lowest level since June 2021. At Tuesday's close, the pair was valued at 0.9055. The greenback may face support around the 0.88 region, if it falls again.

The USD/CAD pair retreated to 1.3440, from a 2-day high of 1.3483 seen at 5:40 am ET. The greenback was trading at 1.3444 per loonie at yesterday's close. Further fall in the greenback may find support around the 1.30 mark.

The greenback eased to 1.2505 against the pound and 1.0966 against the euro, off its early highs of 1.2455 and 1.0934, respectively. The greenback is likely to challenge support around 1.26 against the pound and 1.12 against the euro.

The greenback pulled back to 0.6728 against the aussie, from a 2-day high of 0.6676 hit at 7 am ET. The aussie-greenback pair was worth 0.6751 at Tuesday's close. Next near term support for the greenback is likely seen around the 0.70 level.

The greenback was lower against the kiwi, with the pair trading at 0.6335. This may be compared to Asian session's nearly a 2-month low of 0.6379. At yesterday's trading close, the pair was quoted at 0.6311. The currency may find support around the 1.30 level.