US labour market continues to tighten - ANZ

ADP employment came in soft, potentially pointing to a soft non-farm payrolls release tonight, but even the rise in initial jobless claims figure is low by historical standards, suggesting that the US labour market continues to tighten.

Key Quotes

“The market expects NFP to add 178k jobs tomorrow, well above the 92k pace needed to keep unemployment at 4.5% over the next 12 months. Initial jobless claims rose to 248k but are low by historical standards, suggesting that the US labour market continues to tighten, albeit at a moderating pace. June non-manufacturing ISM beat expectations, rising with underlying components generally upbeat.”