The US unemployment rate falls (7.3%), but the number of jobs added in August disappoints at just 169,000. And job growth for July was also revised lower from 162,000 to 104,000 - the fewest in more than a year.
The US dollar fell on the news but Saxo Bank?s John Hardy says it was just a knee jerk reaction.
The data was being closely watched for signs the Federal Reserve will begin pulling back on its bond buying program. Chairman Ben Bernanke had said the timing would depend heavily on the labor market.
The Federal Open Market Committee meets on September 17-18.
John is also watching the dollar yen, he says a close below 99 would create an interesting set up for next week.