The U.S dollar slumped against the Japanese Yen and also extended losses against a basket of other major currencies on Wednesday, after data showed that U.S. Non-farm private employment rose less than expected in April, fueling concerns over the strength of the U.S. labor market.
In a report, payroll processing firm ADP said non-farm private employment rose by 169,000 last month, below expectations for an increase of 200,000. The economy created 175,000 jobs in March, whose figure was downwardly revised from a previously reported increase of 189,000.
The dollar also remained under pressure after the latest U.S. trade data indicated that the economy may have contracted in the first quarter.
Intra-day bias remains bearish as 21 crosses 55 EMA downward. SSRC and MACD oscillators are also signalling a continuation of bearish momentum. Am expecting further decline to 118.99.
Tomorrow investor would be taking a close look at the U.S unemployment claims.