The breakdown of the report showed manufacturing payrolls slumped 41K during the month, with construction sliding 27K, while employment in services increased 58K to temper the decline in the labor market. At the same time, the gauge of job leavers increased to 6.0% from 5.7%, while average hourly earnings grew at a slower pace during the month, with the index increasing at an annual pace of 2.2% amid projections for a 2.3% rise. The data reinforces an improved outlook for future growth as the nation emerges from the worst recession since the Great Depression and conditions are likely to improve over the following year as the expansion in monetary and fiscal policy continues to feed through the real economy however, firms may keep a lid on production and employment over the coming months as global trade conditions remain weak.
The U.S. dollar bounced back across the board following the better-than-expected NFP release, with the EUR/USD breaking out of the narrow overnight range to reach a low of 1.4912 ahead of the North American trade. The euro-dollar broke below the 20-Day SMA (1.4977) for the first time this week, and may test the 50-Day SMA at 1.4869 for near-term support as the greenback continues to rally against its major currency counterparts. However, as the hourly RSI continues to push deeper into oversold territory, we may see the pair bounce back during the North American trade as equity futures foreshadow a higher open for the U.S. market.
Change in Non-Farm Payrolls Since 1970
Change in Non-Farm Payrolls (10 Year Chart)
Unemployment Rate Since 1970
Unemployment Rate (10 Year Chart)
Average Earnings Growth (YoY) Since 1970
Average Earnings Growth (10 Year Chart)
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