- USD / CAD traded indecisively on Wednesday and is one of the worst performers of the G10 despite higher oil prices.
- Figures from the US ADP report and mixed housing data from Canada were ignored, the focus of the markets is on the Fed Minutes.
The USD / CAD It has traded indecisively so far this Wednesday, trading within a relatively tight range of 1.2700-1.2750, roughly midway between its 21- and 50-day moving averages at 1.2670 and 1.2787 respectively. At current levels just above 1.2700, the pair is trading sideways on the day.
A much stronger-than-anticipated ADP national job change report did little to turn the pair’s dial. The USD may be struggling to rebound on the back of labor market data as we still need confirmation from the official December jobs report that spectacular job growth was recorded last month. Meanwhile, Tuesday’s ISM manufacturing survey sent strong signals via the prices paid sub-index that peak US inflation could come soon, which some believe will ease pressure on the Fed to be aggressive in 2022.
Canadian data in the form of building permits for November, whose month-on-month growth exceeded expectations, and November’s New Home Price Index numbers, which disappointed expectations, have not weighed on the loonie. The loonie is actually one of the worst performers of the G10 on Wednesday, despite strong crude oil prices. Currency traders won’t want to read too much about the loonie’s intraday underperformance ahead of the release of key Canadian jobs data on Friday, which comes out alongside the official US jobs report, however, ahead of Therefore, USD / CAD traders should be attentive to the publication of the Minutes of the last Fed meeting in December at 19:00 GMT.
Technical levels
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