US Dollar Retreats on Weaker-Than-Expected Job Market Data

The US dollar retreated on Wednesday as traders reacted to weaker-than-expected job market data. The ADP Employment Change report showed that private businesses added 44,000 jobs in July, falling short of analyst forecasts of 70,000.

Traders also took note of the ISM Services PMI report for July, which improved from 54.0 in June to 54.1 in July, but still below the expected 54.5. Numbers above 50 indicate expansion, and the slight increase suggests a modest improvement in the service sector.

The US dollar index pulled back towards the 99.75 level after failing to settle above the resistance level at 99.85-100.00. If it falls below this support level, it may head towards the nearest support range of 99.25-99.40.