USDCAD Movement
For the 24 hours to 23:00 GMT on Friday, the USD rose 0.47% against the CAD to close at 1.0027. The Canadian Dollar weakened as investors fretted over the unexpected drop in employment in January.
In Canada, employment fell by 21,900 in January, compared to a downwardly revised rise of 31,200 in the previous month. Market had expected the economy to add 5,000 jobs in January. Also, full time employment change dropped by 20.60K jobs in January, compared to a rise of 41.20K jobs recorded in December. However, the unemployment rate slipped to 7.0% in January from 7.1% in the previous month. Meanwhile, Canada’s seasonally adjusted housing starts fell to a level of 160.6K annually in January, compared to a downwardly revised 197.1K reported in the previous month. Separately, Canada’s international merchandise trade deficit narrowed to CAD0.90 billion in December, compared to a downwardly revised deficit of CAD1.67 billion recorded in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.0047, with the USD trading 0.20% higher from Friday’s close.
The pair is expected to find support at 0.9993, and a fall through could take it to the next support level of 0.994. The pair is expected to find its first resistance at 1.0075, and a rise through could take it to the next resistance level of 1.0104.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
