The soft ADP employment report sparked some selling in USD/JPY after the pair hit a 7-year high of 119.48 earlier in the day. The pair fell about 10 pips after the data to 119.30 in a surprisingly mild reaction to a report that showed just 208K jobs compared to 222K expected.
The moves in other US dollar trades were similarly sized.
The ADP report has struggled to predict non-farm payrolls this year and it’s a sign of its diminished standing in financial markets. The market may also be hesitant to act ahead of the ISM non-manufacturing data at 10 am ET (1500 GMT).