USD/CAD is showing limited movement on Tuesday, with the pair trading in the mid-1.13 range. Trading is light in the currency markets, as US and Canadian banks are closed for a holiday.
Canadian numbers started off the week on a disappointing note, as Housing Starts slipped to 184 thousand last month, well off expectations. The news was much better on Friday, as employment data sparkled. Employment Change posted a solid gain of 43.1 thousand, crushing the estimate of -3.9 thousand. The unemployment rate surprised with a sharp drop, improving from 6.8% to 6.5%. This is the lowest rate we’ve seen since December 2008. The struggling Canadian dollar gained about 100 points on the strong job numbers.
Employment numbers have been strong in the US, and this played a major role in the Fed decision to wind up QE last week. However, US Nonfarm Payrolls, the most important employment indicator, disappointed on Friday. The indicator slipped to 214 thousand, well short of the estimate of 235 thousand. On a brighter note, the unemployment rate slipped to 5.8%, its lowest level in six years. On Thursday, Unemployment Claims fell to 278 thousand. This was better than the estimate of 285 thousand and marked a three-week low.
USD/CAD for Tuesday, November 11, 2014
USD/CAD November 11 at 15:15 GMT
USD/CAD 1.1359 H: 1.1402 L: 1.1349
- USD/CAD was uneventful in the Asian and European sessions. The pair has edged lower in North American trade.
- 1.1278 is providing support.
- 1.1414 is an immediate resistance line.
- Current range: 1.1278 to 1.1414
Further levels in both directions:
- Below: 1.1278, 1.1124, 1.1004 and 1.0961
- Above: 1.1414, 1.1493, 1.1669, 1.1723 and 1.1875
OANDA’s Open Positions Ratio
USD/CAD ratio is pointing to gains in short positions on Tuesday, reversing the direction we saw a day earlier. This is consistent with the movement of the pair, as the Canadian dollar has posted small gains. The ratio currently has a majority of short positions, indicating trader bias towards the Canadian dollar posting gains.
- 12:30 US NFIB Small Business Index. Estimate 95.1 points. Actual 96.1 points.
* Key releases are highlighted in bold
*All release times are GMT