FXstreet.com (Barcelona) - The Canadian Dollar has been hurt by the unexpectedly decline in employment in Canada during December while the USD/CAD has reacted up from 1.0295 to break MA55 periods in hourly chart at 1.0345 to reach intra-day high at 1.0380.
Currently the pair is trading around 1.0360/70, 0.15% above today's opening price action at 1.0340.
The Unemployment rate in Canada has remained unchanged between November and December at 8.5% despite expert's expectations of decline to 8.4% in December. The Employment in Canada has eased 2.600 job places in December, bad in front of expectations of 20.000 places created.
According to TJ Marta, USD/CAD is testing lowers: USD/CAD (1.0303) is down overnight and testing towards a new low since Oct. Support lies at 1.0292 (Jan7 low) and 1.0207 (Oct low). Resistance lies at 1.0749 (Nov27 high), 1.0870 (Nov2 high), 1.0959 (Oct high), 1.0993 (Sep high), and then 1.10 (psychological). In terms of other assets correlating with USD/CAD, watch the CRB, crude oil (both negative), USD index (positive) and SPX (negative). The 10yr interest rate differential is rising in significance.
On the other hand, Valeria Bednarik, FXstreet.com collaborator, comments that the Greenback is trading higher ahead the NFP data: Finally, Canada employment data come out well under expectations. The country lost 2.6K jobs against an expected rise of 20.2K increase, while unemployment rate remained at 8.5%. USD/CAD jumped 70 pips to the upside, dragging dollar higher across the board.