On Wednesday, the U.S. ADP data, known as the 'little non-farm,' showed that private sector employment growth was below expectations, providing new evidence of a continued slowdown in the labor market.

In November, the U.S. ADP employment number recorded a growth of 146,000, the smallest increase since August 2024, below the expected 150,000, with the previous value revised down from 233,000 to 184,000.

After the data release, spot gold rose by $10 in a short time, U.S. Treasury yields narrowed their decline, and U.S. stock index futures slightly expanded their gains.

By industry,

In November, employment in trade/transportation/utilities increased by 28,000, up from 51,000 in October; the median annual wage growth rate was 4.6%, compared to 4.4% in October.

In November, construction employment increased by 30,000, up from 37,000 in October; the median annual wage growth rate was 5.2%, compared to 4.9% in October.

In November, professional/business services employment increased by 18,000, up from 31,000 in October; the median annual wage growth rate was 4.7%, compared to 4.5% in October.

In November, manufacturing employment decreased by 26,000, down from 19,000 in October; the median annual wage growth rate was 4.7%, compared to 4.5% in October.

In November, employment in financial services increased by 5,000, up from 11,000 in October; the median annual wage growth rate was 5.0%, compared to 4.9% in October.

ADP Chief Economist Nela Richardson noted that despite healthy overall growth this month, industry performance is mixed. Manufacturing performance is the weakest since spring. Financial services, leisure, and hospitality sectors also showed weakness.

Lower-than-expected employment growth may solidify expectations for a Fed rate cut in December, thereby dampening the flames of the dollar bulls. However, it is worth noting that changes in ADP data can be very volatile and may be revised in the following months.

Forex analyst Adam Button stated that the market did not react much to the ADP data, partly because it aligns with market trends, and partly because this survey has not had a good track record in predicting non-farm employment data.

Additionally, ahead of Friday's non-farm data, investors may pay more attention to Fed Chair Powell's speech at 2:45 AM the next day.

Continuously updating...

Article reposted from: Jinshi Data