US Private Employment Starts to Cool
US private employment data showed signs of a slowdown after the ADP Non-Farm Employment Change recorded an increase of 109,000 in the latest period. This figure was lower than the market forecast of 118,000, although still better than the previous period's 61,000.
These results indicate that the US private sector is still creating jobs, but the pace is starting to slow down as strongly as expected. This condition has led the market to believe that labor market pressures are easing, opening the door for the Federal Reserve to take a more dovish stance.
For the US dollar, below-forecast ADP data tends to be a negative sentiment. The market views the slowdown in the labor market as strengthening expectations for a Fed interest rate cut, especially if key data from Non-Farm Payrolls, the Unemployment Rate, and Average Hourly Earnings also show weakness.
Meanwhile, gold has the potential to gain support from this data release. If the US dollar weakens and expectations of a rate cut increase, the appeal of gold as a non-yielding asset usually increases. However, market players will remain cautious as the ADP data is only a preliminary reading before the release of key US employment data.(CP)
Sumber: Newsmaker.id
