USDCAD Retreat On U.S. Dismal Economic Data


USDCAD retreat as the employment data out from the U.S. shows the coronavirus crisis impact. The numbers indicate a contraction much worse than the global financial crisis. The U.S. initial jobless claims for the week ended April 18 registered at 4.427 million below the market consensus and below the previous week reading of 5.245 million. The continuing claims for the week ended April 10 came in at 15.976 million below the expectations of 16.476 million; the previous reading was at 11.976 million. The total five-week jobless claims have now jumped to 26.45 million.

The U.S. Manufacturing Output Index dropped at 29.4. The March reading was at 46.5. The Manufacturing PMI came in at 36.9 below the previous reading of 48.5, making fresh 133-month low. The Services Business Activity Index registered at 27.0 below the March reading of 39.8. The Composite Output Index came in at 27.4; the March reading was at 40.9.

The Canadian dollar also supported today by the rebound in crude oil prices. WTI crude futures for May for June delivery trades 23.15% higher at $17.00, while the Brent crude oil is 7.01% higher at 22.19 per barrel.

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USDCAD Price Support and Resistance

The USDCAD is 0.69% lower at 1.4061 close to daily lows as the weak fundamental data weigh on the greenback. The technical picture remains bullish for the pair despite the recent pullback from the recent highs.   

On the downside, first support for USDCAD stands at 1.4053 the daily low. If USDCAD breaks below, the next support will be met at 1.3995 the low from April 17 trading session. Next level to watch is at 1.3881 the low from April 15.  

On the other side, the immediate resistance for USDCAD stands at 1.4198 the daily top. If the pair breaks higher, the next resistance level will be met at 1.4235 the high from yesterday’s trading session. If USDCAD continues higher, the next hurdle stands at 1.4268 the high from April 21. 

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