- The US nonfarm payroll report increased by 210,000, down from the estimated 550,000.
- The change in Canadian employment was multiplied by 5 of the estimates, while the unemployment rate falls.
- USD / CAD threatens to break out of the 200 hourly SMA and that would send the pair down towards 1.2700.
During the New York session, the USD / CAD it declines after a dismal US nonfarm payroll report, down 0.46%, trading at 1.2746 at the time of writing. In the last hour, the United States and Canada reported employment figures.
US Non-Farm Payrolls Disappointing, While Canadian Employment Change Beats Expectations
On Friday, the US Bureau of Labor Statistics (BLS) reported that in November, the US economy added just 210,000 new jobs, down from an expected 550,000. Although the lack of headlines is substantial, it appears to ease investor reaction as the November unemployment rate fell three tenths from 4.5% in October to 4.2%.
Aside from the US, the Canadian economic agenda, the November Job Shift, showed the Canadian economy added 153,700 new jobs, beating economists’ expectations of 35,000. In addition, the pace of the labor market accelerated from the previous month’s figures of just 35,000. Noteworthy in the employment report, 79,900 of the total jobs are full time. Another positive aspect of the November data is that the unemployment rate fell from 6.7% to 6.0%.
Market reaction
That said, the USD CAD reaction tumbled from 1.2819 to 1.2760, bouncing away from lows towards 1.2786. However, at the time of writing, the USD / CAD is spreading its losses severely as it is testing the S2 daily pivot point at 1.2747.
USD / CAD Price Forecast: Technical Outlook
USD / CAD on the 1-hour chart is biased to the downside after forming a bearish 72 pip candle, breaking through essential support levels such as the 50 and 100 hourly simple moving averages (SMAs).
Furthermore, at press time, the 200 hourly simple moving average is under pressure at 1.2742, which, if relented, would extend the USD’s losses against the Canadian dollar, which could witness the USD / CAD drop to the S3 daily pivot at 1.2717 followed by a test of the 1.2700 level.
Additional technical levels
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