If the break is confirmed, USD/CAD will struggle to move higher, as the next resistance line is close. Update

The horrible catastrophe in Japan is still evolving. Apart from the massive amount of casualties from the earthquake and the tsunami, Japan’s nuclear power stations are still causing great worries of a total meltdown. The immense damage that already happened, and the potential for more, mean weaker global demand.

The rise of 0.3% missed early expectations that saw a 0.5% growth rate in February, although some economists saw this smaller growth rate. This was half of January’s growth rate of 0.6%. There are now growing signs that the battle for USD.CAD parity will continue:

USD/CAD is now trading around 1, after another round of struggle around parity. The beginning of the week didn’t shine on the loonie.

Canadian Employment Change showed a gain of 17,900 jobs, worse than last month’s 20,900 gain and the early expectations that stood on 25,900. The unemployment rate remained unchanged at 8.2%. Some economists expected this rate, while others predicted a drop to 8.1%, following last month’s drop in the unemployment rate.

Federal Reserve Chairman Ben Bernanke will speak in Washington about the economic policy and can move the dollar during the Asian session.

The Canadian dollar equals one American one, and even more. USD/CAD dropped under 1.00 for the first time since July 2008 – just before the financial crisis. The move began on thin Easter Day trading. Most of the world, including Canada is on holiday. The final move happened on high volume on Tuesday, during the overlapping period between the London and New York sessions.

Non-Farm Payrolls rose by 162K. This is the first time that the Department of Labor reports a rise in jobs in the month that just ended. There was a gain in jobs in November 2009, but this was seen only in a revision that came later – not in the initial report.

Canada’s employment figures surprised analysts for a second month in a row. Contrary to last month’s huge surprise, the numbers were only slightly better this time. Employment Change showed a gain of 20,900 jobs, better than 17,500 that was predicted. Only a small change.