The US Dollar saw declines in Asian trading, having made strong gains in Tuesday’s trading. A bout of profit taking by investors followed gains made on the back of strong data from the world’s largest economy.
According to a report released on Tuesday, the pace of growth in the US economy’s service sector increased again last month. The Institute of Supply Management reported that its non-manufacturing purchasing managers’ index increased to 58.6 last month, from the 56.8 recorded in April. May’s figures were better than expected as analysts had forecast a 57.9 reading. A reading above 50 signals expansion, whilst a reading below 50 indicates contraction.
The new orders sub-index rose to 60.5 in May from the 60.0 recorded in April. The employment sub-index increased to 54.1 in May from Aprils reading of 53.6. The prices sub-index jumped to 64.3 last Month from the previous months reading of 61.8.
ISM chair Anthony Nieves said: “The majority of respondents are optimistic about business conditions and the overall economy. There continue to be concerns about the uncertainty surrounding tariffs, trade agreements and the impact on cost of goods sold.”
The Labor Department reported on Tuesday in its monthly Job Openings and Labor Turnover Survey, or JOLTS, that U.S. job openings increased to a record high in April. However, hiring continued to lag, indicating a worsening shortage of workers.
Job openings, a keenly watched gauge of labor demand, rose to a seasonally adjusted 6.7 million from 6.6 million in March. April’s figure was the highest level since the government started measuring the series in December 2000. The number of hires increase to 5.6 million in April from the 5.5 million recorded in March. The labor market is now regarded as being either close to or at full employment, with the jobless rate confirmed in Friday’s Non Farm Payrolls Data release, at 3.8 percent, an 18-year low.
The US Dollar index which measures the greenback against a basket of six weighted currencies fell below $94 and is currently down 0.09% at $93.47. US Dollar declines also the greenback fall 0.10% against the GBP and 0.11% against the Euro.