USDCAD pare some of the early losses after better than expected U.S. unemployment rate while the Canada unemployment rate came worse than the expectations.
U.S. NFP Report Mostly Inline
United States Nonfarm Payrolls showed that there are 1,371,000 jobs created in August below the market consensus of 1,400,000. A positive surprise came from the unemployment rate, which dropped to 8.4% well below the expectations of 9.8%, the July reading was at 10.2%. The U6 Underemployment Rate also surprised positive as it came in at 14.2% below the expectations of 17.3%.
The U.S. Labor Force Participation Rate beat the expectations of 61.4% for August as it reported at 61.7%. The United States Average Weekly Hours showed an improvement at 34.6, surpassing the expectations of 34.5, while the Average Hourly Earnings came in at 4.7% also above the forecasts of 4.5% in August.
Canada Unemployment Rate Disappoints
Canada Unemployment Rate disappointed traders as it came at 10.2% in August above the forecasts of 10.1%, the July reading was at 10.9%. The Canada Participation Rate registered in at 64.6% in line with expectations. Canada Net Change in Employment came in at 245.800, below the forecasts of 275,000 in August.
USDCAD Reaction to NFP and Unemployment Data From USA and Canada
USDCAD returned above the 1.31 mark after the release of the NFP report and the unemployment data. The impressive improvement in the unemployment rate might please Fed, which has set employment recovery the first priority of its new policy framework. There is a slight positive momentum for USD after the news, but traders are still cautious.
USDCAD Daily Technical Analysis
The USDCAD is 0.07% lower at 1.3113 but managed to rebound from the daily lows as the bounce from eight-month lows continues.
Support for USDCAD stands at 1.3077 the session low. More buying interest would emerge at 1.3040 the low from yesterday, while the low from September 1st at 1.2989 would provide the next support area.
On the flip side, initial resistance for USDCAD is at 1.3140 today’s top. Minor resistance would be met at 1.3159 the high from yesterday. The 1.32 mark is the next supply zone. You can check One to One Trading Coaching to learn more about trading.
USDCAD Daily Chart