Following the release of the August US employment statistics, the dollar has experienced a decline. The reaction is attributed to the unexpected increase in the unemployment rate from 3.5%, both the previous value and the market expectation, to 3.8%. One factor contributing to this change is the rise in the labor force participation rate from 62.6% to 62.8%. While non-farm payrolls increased by 187,000, surpassing the market estimate of 170,000, the previous month’s figure has been revised downward from 187,000 to 157,000. The growth in average hourly earnings has slowed as well, with a month-on-month increase of 0.2% and a year-on-year increase of 4.3%, both lower than the previous readings.
The market response indicates significant sensitivity to the unemployment rate, resulting in an overall trend of selling in the USD.