USD/CAD reacted with a drop after positive employment numbers were released: 28,400 jobs were gained. A rise of 14K was expected. This move was short-lived, as the tension mounts towards the US Non-Farm Payrolls. The Canadian unemployment rate remained at the low level of 7.4%, as expected.
USD/CAD dropped on the news down to 0.9560, and is now moving higher,. It bounced off 0.96 before the release.
Last month saw a nice drop in the unemployment rate: from 7.6% to 7.4%. This gave a boost to the Canadian dollar, especially as the employment change came out within expectations: a gain of 22.3K jobs.
USD/CAD was trading under the 0.96 resistance line before the release. Support is found at 0.9525, followed by 0.9450. Resistance is at 0.9667, followed by 0.9750.
For more on USD/CAD, see the Canadian dollar forecast.
The moves are somewhat limited, as the markets are awaiting all-important employment numbers from Canada’s neighbor to the south – the US.
Given these good Canadian numbers, the loonie will be able to weather the US figures quite well.
For all the details about this event, see the Non-Farm Payrolls preview.Get the 5 most predictable currency pairs