USD/CAD steady as US job numbers sparkle

USD/CAD is steady on Friday, shortly after key job releases on both sides of the border. Early in the North American session, the pair is trading at 1.3093, down 0.25% on the day.

The focus is on job numbers, as both Canada and the US have just released key employment data for August. The most important of these readings, US Nonfarm Employment Change, came in at 1.371 million, very close to the forecast of 1.375 million. This was certainly a relief, as the ADP Nonfarm Payroll report came in at 428 thousand, well short of the estimate of 1.25 million.

The US unemployment rate sparkled, dropping to 8.4%, down from 10.2% beforehand and well below the estimate of 9.8%. This marks the first unemployment rate in single digits since the March reading of 4.4%, which was a pre-pandemic release. Wage growth also impressed, climbing from 0.2% to 0.4%. This figure easily beat the forecast of 0.0%.

Over in Canada, the numbers weren’t as stellar as in the US, but nevertheless were decent. The economy created 245.8 thousand jobs, a bit short of the forecast of 262.5 thousand. The unemployment rate fell to 10.1%, down from 10.9% beforehand. The forecast stood at 10.2%.

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USD/CAD Technical

  • 1.3178 is the first line of resistance. This is followed by resistance at 1.3232
  • 1.3055 is providing support. The next support level is at 1.3178
  • The 10-day MA is under downward pressure. If the pair can break above this line, it would be a bullish signal

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.