The U.S. dollar gave up its early advance Wednesday, as U.S. private sector job growth slowed below 200,000 for the first time since January of last year, reigniting hopes that the Fed won’t raise rates soon.

Data released by payroll processor ADP showed that private sector employment climbed by 189,000 jobs in March following a slightly upwardly revised increase of 214,000 jobs in February.

Economists had expected an increase of about 230,000 jobs compared to the addition of 212,000 jobs originally reported for the previous month.

Traders now await ISM manufacturing index for March and construction spending in February, due shortly, for further clues about the economy’s performance.

The ADP data is followed by U.S nonfarm payrolls report on Friday, which serves as guide to Fed in its assessment of labor market strength.

The U.S. currency was lower against its major rivals in the Asian session, after ending higher on Tuesday. The greenback broadly weakened since March 18, when the Fed signaled that it prefers a gradual rate hike.

The greenback eased back to 119.76 against the yen, from its previous high of 120.32. The greenback is heading to pierce early 2-day low of 119.41. Continuation of the greenback’s downtrend may lead it to a support around the 119.00 zone. The greenback-yen pair was trading at 120.11 when it ended yesterday’s trading.

The greenback depreciated to 1.0799 against the euro, down by 0.77 percent from an an early high of 1.0717. If the greenback continues its downtrend, it may find support around the 1.10 mark. At Tuesday’s close, the pair was valued at 1.0730.

Eurozone manufacturing sector expanded more than initially estimated as growth accelerated in Germany, Spain, Italy and the Netherlands, final data from Markit Economics showed.

The Purchasing Mangers’ Index rose to a 10-month high of 52.2 in March from 51 in February.

The greenback lost 0.8 percent to hit 0.9659 against the Swiss franc, reversing from a high of 0.9741 touched at 4:45 am ET. Next key support for the greenback may be found around the 0.96 region. The pair ended yesterday’s trading at 0.9719.

After climbing to nearly 2-week high of 1.4739 against the Sterling in European trading, the greenback fell back to 1.4805 following the data. Extension of downtrend may see the greenback finding support around the 1.49 area.

British manufacturing sector expanded at the fastest pace in eight months during March on stronger growth in production and new orders that led to increased hiring, survey results from Markit Economics and the Chartered Institute of Procurement & Supply showed.

The Markit/CIPS Purchasing Managers’ Index rose to 54.4 from 54 in February, which was revised down from 54.1.

Reversing from an early high of 1.2709 against the Canadian dollar, the greenback hit a 2-day low of 1.2641. The greenback-loonie pair was quoted at 1.2683 at Tuesday’s close. The greenback is poised to challenge support around the 1.25 mark.

The greenback retreated to 0.7630 against the aussie and 0.7462 against the kiwi, coming off from early near 3-week high of 0.7582 and near 2-week high of 0.7390, respectively. On the downside, the greenback may test support around 0.77 against the aussie and 0.75 against the kiwi.

The material has been provided by InstaForex Company –