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USD/CAD muted post-data

FXStreet (Edinburgh) - The US dollar kept the composure following labour market releases in the US economy, with USD/CAD hovering over 1.1340/50.

USD/CAD remains firm

The pair is holding on to the mid-1.1300 after a positive reading from the US labour market, showing that Initial Claims dropped to 264K in the week ended on October 10th vs. 287K in the previous week. In the Canadian docket, Manufacturing Shipments contracted 3.3% inter-month in august, missing estimates for a 1.6% drop and down from July’s 2.9% gain. Next of note will be US industrial production, with consensus expecting an expansion of 0.4% MoM during September. Shaun Osborne, Chief FX Strategist at TD Securities, argued, “short-term price signals suggest that an interim low is in and that USDCAD is poised to take another run at resistance in the low 1.14 area, possibly today”.

USD/CAD levels to watch

At the moment the pair is advancing 0.76% at 1.1341 with the next resistance at 1.1385 (2014 high Oct.15) ahead of 1.1400 (psychological level) and then 1.1500 (psychological level). On the downside, a breach of 1.1234 (Tenkan Sen) would open the door to 1.1226 (high Oct.15) and finally 1.1205 (23.6% of 1.0620-1.1385).

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