USDCAD Movement
For the 24 hours to 23:00 GMT on Friday, the USD declined 0.13% against the CAD to close at 0.9872, as risk appetite improved among investors following positive US economic data.
In the US, the non-farm payroll employment rose by 155,000 jobs in December, following an upwardly revised increase of 161,000 jobs in November. Market had expected employment to increase by about 155,000 jobs. Meanwhile, factory orders were unchanged in November, against the forecast for a 0.4% increase. The ISM indicated that its non-manufacturing index climbed to 56.1 in December, from 54.7 in November.
Whereas, in Canada the unemployment rate dropped to 7.1% in December, the lowest level in four years. Meanwhile, the industrial product price index (IPPI) fell 0.3% in November while the raw materials price index (RMPI) fell 1.9% in November.
In the Asian session, at GMT0400, the pair is trading at 0.9879, with the USD trading marginally higher from Friday’s close.
The pair is expected to find support at 0.9844, and a fall through could take it to the next support level of 0.9809. The pair is expected to find its first resistance at 0.9919, and a rise through could take it to the next resistance level of 0.9959.
Trading trends in the pair today are expected to be determined by the release of Ivey PMI in Canada.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
