USD/CAD drops below the 1.3500 mark, eyes on Canadian GDP, US NFP

USD/CAD attracts some sellers for the fifth consecutive day during Friday’s Asian session.
Initial Jobless Claims came in lower than expected; US PCE inflation matched expectations.
A rise in oil prices boosts the Canadian Dollar against the USD.
Market players will monitor the Canadian Gross Domestic Product (GDP), US Nonfarm Payrolls for fresh impetus.

Lallalit Srijandorn FXStreet

The USD/CAD pair loses traction and breaks below the 1.3500 area during the early Asian session on Friday. Market players await the highly-anticipated US Nonfarm Payrolls and Canadian Gross Domestic Product (GDP) for the second quarter. The annual growth number is expected to grow 1.2% from the previous reading and the US economy is expected to create 170K jobs in August. The pair currently trades around 1.3495, losing 0.10% on the day.

Fed Chairman Jerome Powell stated at the Jackson Hole Symposium last week that a potential additional rate hike would be depending on incoming data. However, the mixed economic data from the US on Thursday might challenge the Fed to keep rates higher for longer.

On Thursday, US Initial Claims for the week ending of August 25 fell to 228K, falling short of the market consensus of 232 K. The figure marked the lowest level in four weeks while Continuing Claims reached their highest level in six weeks. Additionally, the Federal Reserve's preferred gauge of inflation, the US Core Personal Consumption Expenditure (PCE) Price Index improved to 4.2% in July from 4.1% in the previous and line with expectations. In response to the data, the Greenback weakened against the Loonie.

On the Loonie front, Statistics Canada reported on Thursday that the nation’s Current Account for the second quarter (Q2) deficit narrowed to C$ 6.63 billion from C$3.17 billion deficit in the previous quarter. Meanwhile, a rise in oil price lifts the Canadian Dollar against its rivals as Canada is the largest exporter of crude to the US.

Market participants will keep an eye on the Canadian Gross Domestic Product (GDP) for the second quarter due later in the day. On the US docket, the US Nonfarm Payrolls will be the closely watched event. The US economy is expected to create 170K jobs in August. Also, the Unemployment Rate and ISM Manufacturing PMI will be released later on Friday. These figures could give a clear direction for the USD/CAD pair.

USD/CAD

Overview
Today last price	1.3496
Today Daily Change	-0.0013
Today Daily Change %	-0.10
Today daily open	1.3509

Trends
Daily SMA20	1.3503
Daily SMA50	1.3338
Daily SMA100	1.3394
Daily SMA200	1.3462

Levels
Previous Daily High	1.3558
Previous Daily Low	1.3504
Previous Weekly High	1.364
Previous Weekly Low	1.3496
Previous Monthly High	1.364
Previous Monthly Low	1.3184
Daily Fibonacci 38.2%	1.3525
Daily Fibonacci 61.8%	1.3537
Daily Pivot Point S1	1.3489
Daily Pivot Point S2	1.347
Daily Pivot Point S3	1.3436
Daily Pivot Point R1	1.3543
Daily Pivot Point R2	1.3577
Daily Pivot Point R3	1.3596

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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