USDCAD Movement
On Friday, the USD declined 0.64% against the CAD to close at 1.0344. The Canadian Dollar gained ground against its US counterpart after data showed that unemployment rate in Canada stood at 6.5% in September, defying market expectation for the unemployment rate to remain unchanged at previous month’s level of 7.1%. Meanwhile, another official report revealed that the change in the number of employed people in Canada declined to a level of 11,900 in September, less than analysts’ call for a drop to 10,000 from a reading of 59,200 witnessed in the earlier month.
However, the gains were capped after the Bank of Canada (BoC) Governor, Stephen Poloz, said that the nation’s economic growth has disappointed so far, but still he assured that the signs continue to encourage.
Separately, the BoC poll showed that businesses in Canada expect higher sales growth, employment and capacity pressures in the next 12 months, but uncertainty weighs on their investment decisions.
In the Asian session, at GMT0300, the pair is trading at 1.0357, with the USD trading 0.13% higher from Friday’s close.
The pair is expected to find support at 1.0329, and a fall through could take it to the next support level of 1.0300. The pair is expected to find its first resistance at 1.0396, and a rise through could take it to the next resistance level of 1.0434.
As Canadian markets are closed on account of a Thanksgiving Day holiday, traders are expected to keep an eye on global economic news for guidance in the pair.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
