With Fridays NFP data fast approaching and the recent resurgence in USD dominance makes today's US data extremely important as the data will either confirm the current USD bullishness and see the USD extend gains until Fridays figure or disappoint markets, seeing a correction in the USD as traders unwind USD in anticipation of NFP Friday.

The ADP Non-Farm data, expected at 166K, is regarded as prelude to the actual NFP number with a better than expected print likely to result in more USD buying while a worse than expected release will see the USD sold off. The Trade Balance figure, expected at -41.1B, will show the ratio of US exports to imports and a worsening of the trade balance, in which the US exports far outweigh its imports could see the USD depreciated as the oversupply of USD in global markets dampens sentiment while better than expected data will see the USD rise. The ISM PMI figure, expected at 53.1, and the Factory Orders, expected at -0.4%, will give us clues as to how companies view the future. Better than expected data will lead markets to optimism, resulting in the USD appreciating while worse than expected data will see sentiment surge as these leading indicators are priced in, with the USD depreciating.

Today's key economic data is as follows:

UK

  • Services PMI expected at 52.1

USD

  • ADP Non-Farm Employment Change expected at 166k
  • Trade Balance expected at -41.1B
  • ISM Non-Manufacturing PMI expected at 53.1
  • Factory Orders m/m expected at -0.4%

CAD

  • Trade Balance expected at -2.5B

AUD

  • Trade Balance expected at -2.32B

Crude Oil

  • US Crude Oil Inventories expected at 1.1M