Nonfarm Payrolls Plunged USDCAD Pare Gains


USDCAD trades 0.35% higher at 1.4185 after the U.S. payrolls drop 701,000 in March, the first jobs decline since 2010. The figure came well below the expectations of -100K, but the worse is that it measures a period before the 10 millions of Americans filed for unemployment benefits. The Unemployment Rate in the USA came in at 4.4% above the expectations of 3.8%. The Average Hourly Earnings registered in at 0.4% topping the expectations of 0.2%.

The jobless claims in the U.S. for the previous week came in at 6.64 million well above the expectations of 3.50 million. Adding the previous week data, we have almost 10 million new Americans claiming unemployment benefits.

Yesterday, the Manufacturing production in Canada dropped at the fastest pace for the last nine-and-a-half years in March. The Canada Markit Manufacturing PMI came in at 46.1 a big miss of the expectations at 53.3 in March. Shrinking demand amid the coronavirus crisis drove to record declines in output, new orders and employment.

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USDCAD Technical Levels to Watch

The USDCAD pare the morning gains and turn negative after the nonfarm payrolls. The technical outlook is bullish despite today’s pullback. A close below 1.39 might cancel the recent positive momentum.      

On the upside, the first resistance for USDCAD pair stands at 1.4224 the daily top. If USDCAD breaks higher, the next resistance level will be met at 1.4295 the high from yesterday’s trading session. In case of a breakout higher, the next hurdle stands at 1.4348 the high from March 31. 

On the other hand, first support for USDCAD stands at 1.4115 the daily low. If the pair breaks below, the next support will be met at 1.4056 the low from April 1st trading session. Next support zone is at 1.3920 the low from March 27 session.   

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