The Canadian dollar has posted gains on Tuesday, as USD/CAD trades in the low-1.14 range in the North American session. On the release front, there was more good news on the US employment front, as JOLTS Job Openings improved to 4.83 million in October. As the Canadian economy is heavily dependent on its southern neighbor, a stronger US economy is good news for Canada. There are no Canadian releases on Tuesday.
US employment data looked superb last week, and the good news continued on Tuesday, as JOLTS Job Openings climbed to 4.83 million, up from 4.74 million a month earlier. This beat the estimate of 4.81 million. On Friday, Nonfarm Payrolls shot up to 321 thousand in November, stunning the markets which had expected a rise of 231 thousand. There was also a rise in wages, which should translate into stronger inflation numbers. The unemployment rate held steady at 5.8%, matching the forecast. The excellent Nonfarm Payrolls should help allay concerns about whether the economy can weather an expected rate increase in 2015.
Canadian data started off the week on a mixed note. Building Permits, which tends to show strong fluctuation, tumbled to 0.7%, compared to a 12.7% gain a month earlier. This fell short of the forecast of 2.1%. There was better news from Housing Starts, which posted a strong gain of 196 thousand, up from 184 thousand in the previous release. However, the reading was short of the estimate of 201 thousand.
USD/CAD for Tuesday, December 9, 2014
USD/CAD December 9 at 15:50 GMT
USD/CAD 1.1421 H: 1.1501 L: 1.1398
- USD/CAD tested resistance at 1.493 in the Asian session. The pair posted losses in the European session. This trend has continued in North American trade, with the pair testing support at 1.1414. Will USD/CAD break below this line?
- On the downside, 1.1414 remains under strong pressure. 1.1278 is stronger.
- 1.1493 is an immediate resistance line. 1.1669 is next.
- Current range: 1.414 to 1.1493
Further levels in both directions:
- Below: 1.1414, 1.1278, 1.1124, 1.1004 and 1.0961
- Above: 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, continuing the trend we saw a day earlier. This is consistent with the movement of the pair, as the Canadian dollar has posted gains. The ratio has a majority of short positions, indicative of trader towards USD/CAD continuing to lose ground.
- 12:30 US NFIB Small Business Index. Estimate 96.6 points. Actual 98.1 points.
- 15:00 US JOLTS Job Openings. Estimate 4.81M. Actual 4.83M.
- 15:00 US IBD/TIPP Economic Optimism. Estimate 47.2 points. Actual 48.4 points.
- 15:00 US Wholesale Inventories. Estimate 0.1%. Actual 0.4%.
* Key releases are highlighted in bold
*All release times are GMT