USD/CAD: Canadian unemployment rate dipped to a 9-year low in August


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD rose 0.26% against the CAD and closed at 1.2146 on Friday.

Macroeconomic data showed that Canada’s unemployment rate unexpectedly fell to 6.2% in August, hitting a nine-year low level and adding to the narrative of a strengthening economy. Meanwhile, investors had envisaged for the unemployment rate to remain unchanged at 6.3%.

In the Asian session, at GMT0300, the pair is trading at 1.2140, with the USD trading a tad lower against the CAD from Friday’s close.

The pair is expected to find support at 1.2080, and a fall through could take it to the next support level of 1.2019. The pair is expected to find its first resistance at 1.2183, and a rise through could take it to the next resistance level of 1.2225.

Ahead in the day, investors will focus on Canada’s housing starts data for August.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

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