Dollar Steady after Mixed Data.

Dollar is steady in early US session after mixed economic data.

 ISM non-manufacturing index improved more than expected to 53.7 in May.

 

ADP employment report release earlier was a disappointment. It showed merely 135k growth in private sector jobs comparing to expectation of 170k. However, the ADP number had been quite different from NFP in the past few months and markets seem not to take today's number too seriously.

 

Economists are expecting NFP to show 168k job growth in May. Other data from US saw factory orders rose 1.0% in April. Non-farm productivity was revised down to 0.5% in Q1 with unit labor costs down -4.3%. Canadian building permits rose 10.50% mom in April.

 

Japanese prime minister Shinzo Abe outlined his "third arrow" in his Abenomics today for spurring sustainable growth. The detail would be released next week. But initial response from markets was negative with Nikkei dropping -519 pts, or down -3.83%.

 

Weakness in Nikkei also weighed down European equities. Yen was seen stronger on risk aversion.

 

European majors were steady though. UK PMI services beat expectation by rising to 54.9 in May.

 

BRC short price index dropped -0.1% in May. Eurozone GDP was unrevised at -0.2% qoq in Q1, retail sales dropped -0.5% mom in April.

 

Aussie was weighed down by weaker than expected Q1 GDP which grew 0.6% qoq in Q1.