US labour market better than expected in October

Today ADP employment numbers were released from US for the month of October.

ADP number shows US economy and its labour markets are quite resilient, in spite of recent slowdown.

There are two things to note even in the headline that,

• Job growth beat expectations, is down but has not deteriorated much as payroll rose by 182,000.
  
  
• September payroll marginally revised to 190,000 (down from 200,000).

Key highlights -

• Non-farm private sector employment grew at 182,000 in October, median expectation was for 180,000.
• Small business sector hiring at 90,000, compared to 37,000 last month.
• Employment in franchise increased to 52,500 compared to last month's 33,000.
• Mid-sized companies added 63,000 jobs compared to last month's 56,000 jobs.
• Large sector added just 29,000 compared to last month's 106,000 jobs.
• Manufacturing sector payroll dropped by 2,000 compared to 15,000 job loss last month.
• 24,000 jobs were added in goods producing sector, compared to last month's 12,000
• Construction sector added 35,000 on payroll, same as last month's 35,000.
• Services sector employment remains robust but relatively weak as payroll added 158,000 people in October. September gains were 188,000.

Dollar is broadly but marginally higher however scope of any large gains remain limited, with NFP report to be released on Friday.

FXCM US Dollar index is currently trading at 12060, with resistance around 12070 area and support around 12000 area.