The dollar surged across the board after US Non-farm payrolls beat forecast in Aug, with 201K new jobs created vs forecasted 191K and downward-revised previous month’s release to 147K.
Unemployment rate remained unchanged at 3.9% despite forecast for fall to multi-year low at 3.8%.
Strong boost to the greenback was provided by increase in average hourly earnings which rose by 0.4% m/m in Aug vs 0.3% increase forecast, while annualized figure at 2.9% in Aug vs 2.7% forecast showed the fastest pace since 2009. The USDCAD pair jumped to session high at 1.3182, gaining 0.5% in post-data rally.
At the same time, downbeat Canadian data added to fresh pressure on the loonie.
Canada’s unemployment rate rose to 6.0% in Aug, from 5.8% in July and also beating forecast at 5.9%.
More disappointing were result of Canada’s employment change as number of people employed fell by 51.6K, strongly disappointing forecast for 5.1K increase and previous month’s increase by 54.1K.
The USDCAD’s near-term structure firmed after today’s bounce, as downticks were contained by 55SMA and post-data rally looks for renewed attempt through cracked pivot at 1.3195 (Fibo 61.8% of 1.3386/1.2887 descend, close above which would be bullish signal for continuation of recovery leg from 1.2887 (28 Aug low).
Firming momentum and daily MA’s in bullish configuration support the notion, as the pair is on track for the second straight bullish weekly close.
Only return and close below 55SMA (1.3104) and broken bear-channel upper boundary (1.3087) would weaken the structure and put bulls on hold.
Res: 1.3182; 1.3207; 1.3226; 1.3268
Sup: 1.3136; 1.3104; 1.3087; 1.3065
