USDCAD trades 0.23% higher at 1.3193, hitting the daily high after strong NFP data. United States Nonfarm Payrolls came in at 128K topping expectations of 89K in October, the Unemployment Rate came in at 3.6% in line with forecasts for October. US Average Hourly Earnings (month over month) came in at 0.2%, below expectations of 0.3% in October.
Bank of Canada this week kept interest rates unchanged at 1.75% as widely expected by markets while Fed delivered the 25 basis point rate cut that the market expected.
USDCAD momentum is bearish despite the sharp intraday rebound after the NFP data. The pair trades below all major daily moving averages. On the upside, immediate resistance stands at 1.3195 the daily high, then at 1.3200 the 100-day moving average, while more offers will emerge at 1.3211 the high from October 17th. A break above the 1.32 mark might attract more offers supported by stronger US economic data. On the downside, USDCAD first support stands at 1.3140 the daily low, a break below might drive prices down to 1.3015 low from July 14th.Download our latest quarterly market outlookfor our longer-term trade ideas.
Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.