USD/CAD – Steady After Strong Canadian Employment Data

The Canadian dollar continues to trade below the key 1.10 line, as USD/CAD trades in the mid-1.09 line in the North American session. On the release front, the Bank of Canada released its quarterly BOC Business Outlook Survey. Today’s sole release out of the US is Consumer Credit.

On Friday, Canadian Employment Change posted an outstanding gain of 42.9 thousand, crushing the estimate of 21.5 thousand. This was the best showing since last August. The strong data continues to weigh on USD/CAD, as the Canadian dollar remains under the 1.10 level. For the first time in four months, the unemployment rate dropped below the 7.0% level, coming in at 6.9%.

Over in the US, the markets eagerly awaited the release of Non-Farm Payrolls, one of the most important economic indicators. The indicator rose nicely last in March, climbing to 192 thousand, compared to 175 thousand a month earlier. However, the markets were looking for more, with the estimate standing at 199 thousand. The Unemployment Rate also missed the mark, as it edged up to 6.7%. The estimate stood at 6.6%. Although these numbers were not as strong as hoped, the Federal Reserve is expected to continue trimming QE when it meets at the end of April.

 

USD/CAD for Monday, April 7, 2014

Forex Rate Graph 21/1/13

USD/CAD April 7 at 15:05 GMT

USD/CAD 1.0976 H: 1.1010 L: 1.0967

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.0775 1.0852 1.0906 1.1000 1.1094 1.1177

 

  • USD/CAD is showing little movement in Monday trading.
  • On the downside, the key line of 1.1000 continues to provide weak support. There is stronger support at 1.0906, which is protecting the 1.09 level.
  • 1.1094 is the next resistance line. This is followed by 1.1177.
  • Current range: 1.1000 to 1.1094

Further levels in both directions:

  • Below: 1.1000, 1.0906, 1.0852, 1.0775 and 1.0706
  • Above: 1.10, 1.1094, 1.1177, 1.1319 and 1.1496

 

OANDA’s Open Positions Ratio

USD/CAD ratio is pointing to gains in short positions on Monday. This is consistent with what we are seeing from the pair, as the Canadian dollar has posted very slight gains. The ratio has a majority of open long positions, indicating a trader bias towards the US dollar moving higher.

USD/CAD is showing little movement in Monday trade. With no major events out of either the US or Canada today, we could be in for an uneventful day from the pair.

 

USD/CAD Fundamentals

  • 12:30 Bank of Canada Business Outlook Survey.
  • 19:00 US Consumer Credit. Estimate 14.1B.

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.