- Hopes of a NAFTA deal post-Trump’s comments keep the CAD buoyed.
- Looks vulnerable below 1.3100, focus on the US, Canadian jobs data and NAFTA talks.
The bears take a breather in the European session, allowing the USD/CAD pair to consolidate the latest drop to 1.3115 lows, as attention turns towards the US and Canadian employment data release for the month of August.
NAFTA talks loom
The spot is remains exposed to further downside bias and the 1.3100 level could be the line in the sand, as the CAD bulls expect a North Atlantic Free Trade Agreement (NAFTA) deal to be reached between the US and Canada later on Friday, especially after the US President Trump’s optimistic remarks delivered earlier today. Trump noted that he believes that Canada will be a part of the NAFTA.
Moreover, a negative sentiment seen around the US dollar across its main peers also helps keep the offered tone intact in the pair. A steady reading of the US average hourly earnings for August is expected to add to the weight on the greenback.
Apart from the US jobs data, the focus also remains on the Canadian employment report due at 1230 GMT for some trading impetus. Meanwhile, oil prices remain largely subdued amid persisting trade tensions, which is likely to have limited influence on the Loonie.
FXStreet’s Analyst, Yohay Elam, noted: “1.3175 capped the pair during several days in mid-August and remains of importance. 1.3220 held the pair down in July and also in early September, making it a stronger line. Further above, 1.3295 was a high back in mid-July. 1.3350 and 1.3380 both date back to late June.1.3100 was a resistance line in mid-August and also earlier in the month. 1.3045 supported the pair in mid-August. 1.2960 was a swing low early in the month. Further down, 1.2880 was the low point in August. Even lower, 1.2820 cushioned the pair in May.”
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