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USD/CAD spikes to 1.3470 area after employment data, quickly retreats below 1.3450

  • Unemployment stays unchanged at 5.6% in Canada.
  • NFP in December beats analysts' estimate by a wide margin.
  • US Dollar Index advances to 96.50 area on upbeat employment data.

With the initial reaction to the employment data from both Canada and the United States, the USD/CAD pair jumped to 1.3473 but quickly reversed its course. As of writing, the pair was trading at 1.3445, losing 0.28% on a daily basis.

The monthly report published by the U.S. Bureau of Labor Statistics on Friday revealed that nonfarm payrolls increased by 312K in December and surpassed the experts' forecast of 177K. Additionally, the annual wage inflation as measured by the average hourly earnings rose 3.2% in December to beat the market expectation of 3%. Boosted by the data, the US Dollar Index gained traction and was last up 0.22% on the day at 96.50. Markets are now waiting for the FOMC Chairman Powell's speech, which is scheduled to start at 15:15 GMT.

Despite the USD rally, however, the pair remained under pressure as the loonie preserved its strength with the Canadian unemployment rate staying unchanged at 5.6% vs 5.7% expected. Additionally, a more-than-3% increase in crude oil prices gives an additional support t the commodity-related CAD.

Technical levels to watch for

USD/CAD

Overview:
    Today Last Price: 1.3445
    Today Daily change: -37 pips
    Today Daily change %: -0.274%
    Today Daily Open: 1.3482
Trends:
    Previous Daily SMA20: 1.3529
    Previous Daily SMA50: 1.3336
    Previous Daily SMA100: 1.3174
    Previous Daily SMA200: 1.3074
Levels:
    Previous Daily High: 1.366
    Previous Daily Low: 1.3469
    Previous Weekly High: 1.4134
    Previous Weekly Low: 1.3564
    Previous Monthly High: 1.4134
    Previous Monthly Low: 1.316
    Previous Daily Fibonacci 38.2%: 1.3542
    Previous Daily Fibonacci 61.8%: 1.3587
    Previous Daily Pivot Point S1: 1.3414
    Previous Daily Pivot Point S2: 1.3346
    Previous Daily Pivot Point S3: 1.3224
    Previous Daily Pivot Point R1: 1.3605
    Previous Daily Pivot Point R2: 1.3727
    Previous Daily Pivot Point R3: 1.3795

 

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