Canada gained 34.3K jobs in August. Economists’ expectations stood on 9.9K. The unemployment rate stands on 7.3%. 7.3% was predicted.
USD/CAD bounced off the 0.98 line before the release after consolidating under the critical line of 0.9840 beforehand. The pair is now attacking this line. Will this attempt succeed?
Canadian building permits dropped by 2.3%. A drop of 1.5% was expected.
At the same time, a disappointing US Non-Farm Payrolls figure was released, so the reaction in USD/CAD is a reaction to both critical releases.
Needless to say that strong Canadian jobs data helps the loonie. The weak US Non-Farm Payrolls isn’t good for the Canadian dollar, but the rising expectations are certainly CAD positive, even though this isn’t a done deal.
Update: USD/CAD breaks lower, trading at 0.9791 at the time of writing. It now continues even lower.