USD/CAD: Canadian unemployment rate fell to its lowest in nearly a decade in November


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD declined 1.54% against the CAD and closed at 1.2698 on Friday.

The Canadian Dollar gained ground against the USD on Friday, after the latest Canadian jobs data painted a bright picture of the nation’s labour market.

Canada’s unemployment rate declined more-than-expected to 5.9% in November, dropping to a nearly ten-year low level and boosting optimism over the health of the nation’s labour market. In the prior month, the unemployment rate had recorded a rate of 6.3%, while investors had envisaged for a fall to 6.2%.

Moreover, the nation’s annualised gross domestic product (GDP) sharply slowed to 1.7% in the three months to September, compared to a revised expansion of 4.3% in the prior quarter, as exports tumbled and businesses pulled back on investment. Meanwhile, market participants had anticipated the GDP to slow down to 1.6%.

In the Asian session, at GMT0400, the pair is trading at 1.2715, with the USD trading 0.13% higher against the CAD from Friday’s close.

The pair is expected to find support at 1.2635, and a fall through could take it to the next support level of 1.2556. The pair is expected to find its first resistance at 1.2843, and a rise through could take it to the next resistance level of 1.2972.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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