USD/CHF clocks three-week highs after ADP

The USD/CHF pair extended the daily rise after the positive ADP employment report and refreshed its highest level since March 15 at 1.0050. Following the initial reaction, the pair gave back some of its quick gains and is now up 0.11% at 1.0030.

Private sector employment came in at 263,000 in March, beating the consensus of 187,000. However, February's figure was revised lower to 245,000 from 298,000, making it harder for the greenback to sustain its bullish momentum. The US Dollar Index after spiking up to 100.54, eased back to 100.45. Today's encouraging data could be taking as a sign towards a positive NFP reading on Friday.

With the ADP report out of the way, now the markets' attention turns to US ISM non-manufacturing PMI ahead of the minutes from the 14-15 March FOMC meeting.

• FOMC minutes in the limelight - Rabobank

Technical outlook

The initial resistance for the pair aligns at 1.0050 (daily high) followed by 1.0070 (100-DMA) and 1.0100 (psychological level/Fib. 50% of Jan/Feb fall). On the downside, a sustained slip below 1.0000 (psychological level) could aim for 0.9950 (200-DMA) and 0.9880 (Mar. 22 low).