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6 Sep 2013
USD/CAD topples below 1.0400 after NFP disappoints
FXstreet.com (Lisbon) - The USD/CAD foreign exchange breached the 1.0400 level Friday (1.0387 session low), after US data sent the pair crashing towards weekly lows.
In the United States, Nonfarm payrolls came in at 169K in August, missing expectations of 180K. In addition, The Unemployment Rate (August) yielded a figure of 7.3%, beating estimates of 7.4%. In Canada, the Unemployment Rate (August) came in at 7.1%, relative to estimates of 7.2%.
USD/CAD strategic bias
According to the TD Securities Team, “The USD’s inability to push decisively higher this week in the face of rising US yields and more supportive short-term spreads versus the CAD in particular suggests that the downdraft this week is the result of flow and/or stops. In our opinion, there is still little fundamental justification for a significantly higher CAD at this point. Key daily support remains 1.0440/45, the site of the August break higher. While this area holds (allow for some minor slippage below), we remain bullish – below 1.04, we turn neutral.”
USD/CAD technical levels
The USD/CAD has been unable to stop or control the bleeding thus far, suffering from losses of -0.89% as it trades at 1.0411 during US trading. In terms of the technical levels, the USD/CAD is currently entrenched at support at 1.0402, a break of which will open up 1.0370, notes the Danske Research team.
In the United States, Nonfarm payrolls came in at 169K in August, missing expectations of 180K. In addition, The Unemployment Rate (August) yielded a figure of 7.3%, beating estimates of 7.4%. In Canada, the Unemployment Rate (August) came in at 7.1%, relative to estimates of 7.2%.
USD/CAD strategic bias
According to the TD Securities Team, “The USD’s inability to push decisively higher this week in the face of rising US yields and more supportive short-term spreads versus the CAD in particular suggests that the downdraft this week is the result of flow and/or stops. In our opinion, there is still little fundamental justification for a significantly higher CAD at this point. Key daily support remains 1.0440/45, the site of the August break higher. While this area holds (allow for some minor slippage below), we remain bullish – below 1.04, we turn neutral.”
USD/CAD technical levels
The USD/CAD has been unable to stop or control the bleeding thus far, suffering from losses of -0.89% as it trades at 1.0411 during US trading. In terms of the technical levels, the USD/CAD is currently entrenched at support at 1.0402, a break of which will open up 1.0370, notes the Danske Research team.