USD/CAD Meanders Near Lows Ahead of Employment Data

USD/CAD Meanders Near Lows Ahead of Employment Data

6 May 2016, 12:35
Roberto Jacobs
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USD/CAD Meanders Near Lows Ahead of Employment Data

Having met fresh supply at 1.2900 levels in early Europe, the USD/CAD pair is seen consolidating a sudden downwards spike near 1.2840 region.

USD/CAD slips nearly 50-pips

Currently, the USD/CAD pair drops -0.08% to 1.2844, retreating slightly from fresh session lows of 1.2835. The Loonie trade around a flat-line post-European open as investors turn cautious ahead of the release of crucial employment data from both the North American economies.

In April, the Canadian economy is projected to have added only 1,000 new jobs, while the unemployment rate is expected to rise to 7.2%. While from the US docket, markets are expecting a robust 200,000 increase in the US jobs coupled with a 0.3% gain in hourly wages.

Further, subdued trading seen in the oil prices also fails to provide fresh impetus to the Canadian dollar versus its US counterpart, as focus now remains on the fundamentals for fresh momentum.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2886/1.2900 (May 4 High/ round number) and 1.2971 (50-DMA). To the downside, immediate support might be located at 1.2800 (round number) and below that 1.2750/49 (psychological levels/ daily S2).


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