- Nonfarm payrolls in the U.S. increases more than expected in October.
- US Dollar Index turns flat near 96.30.
- Canadian unemployment falls to 5.8%.
The USD/CAD pair gained traction in the last thirty minutes and added more than 50 pips to turn positive above 1.31 handle. As of writing, the pair was trading at 1.3103, adding 0.12% on a daily basis.
The monthly employment report published by the U.S. Bureau of Labor Statistics revealed that nonfarm employment rose 250K in October to surpass the analysts’ estimate of 190K. More importantly, annual wage inflation, measured by the average hourly earnings, advanced to 3.1% from 2.8% recorded in September. The US Dollar Index, which tested the 96 mark earlier in the day, retraced all of its daily losses and was last seen flat on the day at 96.30.
On the other hand, the unemployment rate in Canada ticked down to 5.8% in October and the international trade deficit fell to $416 million in September. Nevertheless, these reading failed to help the loonie stay resilient against the buck.
- US: Total nonfarm payroll employment increased by 250,000 in October vs. 190,000 expected.
- US: Trade deficit increased to $54 billion in September vs $53.6 billion expected.
- Canada: Unemployment rate decreased 0.1% to 5.8% in October.
- Canada: International trade deficit narrowed to $416 million in September from $551 million in August.
In the meantime, the barrel of West Texas Intermediate continues to trade around $63, the lowest level since April, and is putting some extra pressure on commodity-sensitive currencies. Later in the session, Baker Hughes Energy Services will publish its weekly oil rig count data.
Technical levels to consider
The pair could face the next resistance at 1.3165 (Nov. 1 high) ahead of 1.3200 (psychological level/Sep. 10 high) and 1.3225 (Sep. 6 high). On the downside, supports are located at 1.3070 (20-DMA), 1.3015 (50-DMA) and 1.2985 (200-DMA).
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