USD/CHF plummets to mid-0.9800s, lowest since mid-Jan. and rebounds

   •  The USD sees aggressive selling pressure after dismal ADP report.
   •  The US private sector employers added only 27K new jobs in May.
   •  Investors eye US ISM PMI for immediate respite for the USD bulls.

The USD/CHF pair finally broke down of its daily consolidative trading range and tumbled to 4-1/2 month lows in reaction to dismal ADP report.

Data released on Wednesday showed that the US economy added only 27K new jobs in May, marking its worst reading since March 2010 and confirming that the US economy might actually be weakening. The knee-jerk market reaction saw the benchmark 10-year US bond yields tumble back closer to the 2.0% mark and affected the US Dollar in a negative manner. 

The pair added to its heavy losses recorded since last Friday and took along some short-term trading stops place near the 0.9900 handle. Hence, technical selling could also be one of the key factors behind the latest leg of sharp downfall to the lowest level since mid-January. 

However, the prevailing positive trading sentiment around equity markets weighed on the Swiss Franc's safe-haven status and helped limit further losses, at least for the time being, with the pair recovering around 30-pips from low to currently trade around the 0.9980-85 region.

Next on tap will be the release of US ISM non-manufacturing PMI, which will be looked upon for some immediate respite for the USD bulls and in order to grab some short-term trading opportunities. The key focus, however, will be on Friday's closely watched US monthly jobs report - popularly known as NFP.

Technical levels to watch