USDCAD Movement
On Friday, the USD declined 0.51% against the CAD to close at 1.0277. The Canadian Dollar tumbled earlier after a domestic jobs data for July were short of market expectations, but rebounded in later trading in response to broader weakness in the US Dollar. Demand for the Loonie also increased following a rise in oil prices.
However, on the Canadian employment front, situation seemed very gloomy after the unemployment rate rose to 7.2% in July, while the Canadian economy lost 39.4K jobs in July. Additionally, the participation rate fell to 66.5% in July. Separately, housing starts retreated to a reading of 192.9K units in July, from downwardly revised reading of 193.8K units in June.
In the Asian session, at GMT0300, the pair is trading at 1.0287, with the USD trading 0.10% higher from Friday’s close.
The pair is expected to find support at 1.0256, and a fall through could take it to the next support level of 1.0225. The pair is expected to find its first resistance at 1.0336, and a rise through could take it to the next resistance level of 1.0385.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
