The U.S. dollar extended rally against its major rivals on Wednesday, as private sector jobs growth outpaced expectations in June, reinforcing hopes for a September rate hike by the Federal Reserve.

Data released by payroll processor ADP showed that employment in the private sector jumped by 237,000 jobs in June following an upwardly revised increase of 203,000 jobs in May.

Economists had expected an increase of about 220,000 jobs compared to the addition of 201,000 jobs originally reported for the previous month.

The private sector job growth in June was the strongest since an increase of 275,000 jobs last December.

Traders await Markit's manufacturing PMI and ISM manufacturing index, due shortly, for more clues about the economy.

The ADP data is viewed as a rough guide to official non-farm payrolls report, which will be released tomorrow due to a federal holiday in the U.S. on Friday. The economy is expected to show a creation of 225,000 jobs in June, with an unemployment rate of 5.4 percent.

Market participants are now pricing in a September hike by the Fed, as a number of Fed officials signaled such a move depending upon the strength of recovery.

The greenback was trading in a positive territory in the previous session, after Tuesday's upbeat consumer confidence report sparked hopes that Fed is on track to raise rates this year.

The greenback rallied to 1.5634 against the pound, its strongest since June 17, and was up by 0.5 percent from Tuesday's closing value of 1.5712. The greenback is seen finding resistance around the 1.55 zone.

Survey data from Markit Economics showed that British manufacturing sector expanded for the twenty-seventh consecutive month in June, though the pace of growth unexpectedly eased to its weakest in 26 months due to moderation of growth in production and new orders.

The seasonally adjusted Markit/CIPS Purchasing Manager's Index dropped to 51.4 in June from 51.9 in May, which was revised from 52. Economists had expected an improvement in the index to 52.5. A PMI reading above 50 suggests expansion in the sector.

The greenback advanced to 0.9439 against the Swiss franc for the first time since June 5. This is a 1 percent appreciation from yesterday's closing quote of 0.9345. Continuation of the greenback's uptrend may take it to a resistance surrounding the 0.97 mark.

The greenback that ended yesterday's trading at 122.48 against the yen rose to a 2-day high of 123.14. If the greenback extends rise, it may challenge resistance around the 124.00 area.

Reversing direction, the greenback rose back to a 2-day high of 1.1074 against the European currency. The pair was valued at 1.1140 when it ended Tuesday's trading. Next key resistance for the greenback may be located around the 1.09 level.

Final data from Markit showed that the euro area manufacturing sector expanded as initially estimated in June.

The Purchasing Managers' Index rose to 52.5 in June from 52.2 in May. The reading came in line with flash estimate published on June 23. It was the highest reading since April 2014.

Extending early rise, the greenback spiked up to nearly a 4-week high of 1.2545 against the Canadian dollar. On the upside, 1.27 is seen as next resistance level for the greenback. At Tuesday's close, the pair was worth 1.2487.

The greenback was trading higher at 0.6750 against the kiwi and 0.7664 against the aussie, reversing from an early low of 0.6810 and a 5-day low of 0.7738, respectively. The greenback is likely to test resistance around 0.66 against the kiwi and 0.76 against the aussie.

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