Canada employment dropped -24.2k in July, worse than expectation of 10.0k. Unemployment rate rose to 5.7%, up from 5.5%, above expectation of 5.5%. Also from Canada housing starts dropped to 222k in July, above expectation of 210k.
From US, PPI rose 0.2% mom, 1.7% yoy in July, matched expectation. PPI core dropped -0.1% mom, slowed to 2.1% yoy in July, below expectation of 0.2% mom, 2.3% yoy.
USD/CAD recovers notably after the releases but it’s staying below 1.3345 temporary top. Intraday bias remains neutral and some more consolidative trading could be seen. But as long as 1.3177 support holds, further rally is expected in the pair through 1.3345 in a later stage.
