Canada’s employment change figure showed a gain of 52.1K jobs in September. Expectations stood on a gain of 11.7K. So, this is an excellent surprise. The unemployment rate stands at 7.4%. No change was expected from last month’s 7.3%.
USD/CAD traded around 0.98 prior to the release and is now falling to 0.9755. Support is getting closer (0.9736).
It’s important to note that the simultaneous release of the positive US Non-Farm Payrolls also contributes to the choppy trading in the pair.
The good report shows that the Canadian dollar is strong, and the loonie could now resume its gains after a period of consolidation.
According to the initial report published last month, Canada gained 34.3K jobs in August. This was not revised now.
For more on the loonie, see the USDCAD forecast.
Update: USD/CAD could not break below support at 0.9736 and after a test, it bounced back up.