USDCAD Movement
On Friday, the USD fell 0.96% against the CAD to close at 1.0399. The Canadian Dollar strengthened on the back of positive domestic employment data.
In Canada, an official data showed that the economy added 59,200 jobs during August, surpassing market expectation for an addition of 20,000 jobs and compared to a reduction of 39,400 jobs seen in the previous month. Another report depicted that unemployment rate in the nation improved to be at 7.1% in August, as compared to a rate of 7.2% recorded in the previous month. Meanwhile, on a seasonally adjusted basis, Canada’s Ivey purchasing managers index advanced to a reading of 51.0 in August, less than analysts’ expectation for an increase to a reading of 52.1 and compared to a level of 48.4 registered in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.0398, with the USD trading marginally lower from Friday’s close.
The pair is expected to find support at 1.0355, and a fall through could take it to the next support level of 1.0312. The pair is expected to find its first resistance at 1.0466, and a rise through could take it to the next resistance level of 1.0534.
Investors are expected to keep a close watch on the release of Canada’s building permit data, scheduled to release later during the day, for further direction.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
