USD/CAD Erases Early Gains After Disappointing NFP Data
pair reversed its early gains to 1.2900 handle and dipped back into
negative territory on disappoint US NFP print and drop in Canadian
According to the data released, US economy added just 160,000 jobs in the month of April, much lower than an expected print around 200,000. The unemployment rate held steady at 5.0% while average hourly earnings rose 0.3%, which were in-line with expectations.
Simultaneously, the Canadian monthly employment report showed mixed reading with the number of employed people during April falling by 2,100 while unemployment rate holding steady at 7.1%.
Immediately after the releases, the pair erased its early gains and dropped to 1.2827 level but is currently trading at 1.2870, with marginal gains from Thursday's close.
Technical levels to watch
The pair continues to face strong hurdle near 1.2900 handle, marking a short-term descending trend-channel resistance. A convincing break through the descending trend-channel resistance would set the stage for extension of the pair's near-term recovery trend towards 1.2980 horizontal resistance, closer to the very important 1.3000 psychological mark.
On the flip side, a drop back below 1.2850 could drag the pair back towards yesterday's low level support near 1.2785. A follow through selling pressure now seems to open room for a further slide towards its next major support near 1.2735 area.