USDCAD trades 0.19% higher at 1.3064 helped by better Initial jobless claims data. The U.S. Initial Jobless Claims came in at 214K, below forecasts of 220K on January 3. The previous week reading revised to 223,000 from 222,000. The four-week moving average came in at 224K below the estimates of 236.64K.
From Canada the Building Permits (month over month) came in at -2.4% below forecasts of 1% in November. The Housing Starts s.a (year over year) came in at 201.3K below estimates of 210K in December.
The crude oil price continues the correction today from three-month highs giving up 0.01% at $59.60 adding extra pressure to CAD.
Nonfarm Payrolls Will Set the Tone Tomorrow
Investors await the Nonfarm Payrolls tomorrow for fresh clues on U.S. economy health. Analysts expect a weaker reading tomorrow of 168,000, the previous reading was 266,000. For the Private Nonfarm Payrolls the forecasts are foe 146,000 below the previous reading of 254,00. The participation rate expected to stabilize around 63.2%
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USDCAD Technical Outlook
USDCAD continue higher for third consecutive session in a row. The pair keeps the rebound from two-month lows alive boosted by stronger economic data from the U.S. The pair today have stalled at the descending trendline which started late November.
USDCAD needs to break above the descending trendline in order to attract more bids. Intraday resistance stands at 1.3066 the daily high. Next resistance level stands at 1.3119 the high from December 27th. A break above that level might challenge the 50-day moving average at 1.3176.
On the contrary, immediate support for USDCAD stands at 1.3025 the daily low. If the pair breaks below that support level the next target to the downside is at 1.2956 the low from January 7th.
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