U.S. Dollar Falls After ADP Private Sector Jobs Growth Slows

The U.S. dollar declined against its key counterparts in European trading on Wednesday, as a report showed that ADP private sector jobs growth slowed more than expected in April, raising worries that sluggish global growth may have weighed on hiring.

ADP said the private sector added 156,000 jobs in April following an increase of 194,000 jobs in March. Economists had expected the addition of 193,000 jobs for the month.

The report has generated some nervousness ahead of the release of the Labor Department's more closely watched monthly jobs report on Friday.

The Labor Department report is expected to show an increase of about 200,000 jobs in April, while the unemployment index is expected to edge down to 4.9 percent.

A separate report from the Commerce Department showed a notably narrower U.S. trade deficit in the month of March.

The report said the trade deficit narrowed to $40.4 billion in March from $47.0 billion in February. The deficit had been expected to narrow to $41.4 billion.

The currency trended higher in the Asian session, as Atlanta Fed chief Dennis Lockhart and San Francisco's John Williams signaled about the possibility of a rate hike in June.

Reversing from an early 2-day high of 0.9576 against the Swiss franc at 4:00 am ET, the greenback eased to 0.9531. The greenback is seen finding support around the 0.92 zone.

Survey data from the UBS investment bank showed that Switzerland's stagnating nominal house prices and a slowdown in household debt growth dampened the housing bubble indicator in the first quarter.

The UBS Swiss Real Estate Bubble Index fell marginally to 1.38 points in the first quarter from 1.41 in the prior quarter.

The greenback reversed from an early 2-day high of 1.1470 against the euro, edging lower to 1.1530. If the greenback slides further, it may locate support around the 1.16 mark.

Survey data from Markit showed that the euro area private sector expanded at a slower pace as estimated in April.

The composite output index dropped marginally to 53 in April, in line with flash estimate, from 53.1 in March. The index signaled expansion in each of the past 34 months.

The greenback, having advanced to a 5-day high of 107.44 against the yen at 5:30 pm ET, reversed direction and fell to 106.25. On the downside, 104.00 is possibly seen as the next support level for the greenback-yen pair.

Pulling away from an early 9-day high of 1.4462 against the pound, the greenback eased to 1.4542. The next possible support for the greenback may be seen around the 1.46 area.

Data from Markit Economics and the Chartered Institute of Procurement & Supply showed that British construction growth eased more-than-expected in April to the weakest level in almost three years.

The Markit/CIPS UK Construction Purchasing Managers' Index fell to 52.0 in April from 54.2 in the previous month. Economists had expected the index to drop slightly to 54.0.

After rising to a 6-day high of 0.6873 against the kiwi at 4:10 am ET, the greenback retreated to 0.6922. Continuation of the greenback's downtrend may see it finding support around the 0.72 level.

Looking ahead, U.S. ISM non-manufacturing PMI data for April, factory orders and durable goods orders for March and U.S. crude oil inventories data are slated for release shortly.