- USD/CAD witnessed some selling following the release of the US/Canadian jobs report.
- US economy added 245K new jobs in November and the unemployment rate fell to 6.7%.
- Stronger Canadian employment details underpinned the loonie and added to the selling bias.
The USD/CAD pair broke down of its intraday consolidative trading range and dropped to 1.2825-20 region, or the lowest level since October 2018 at the beginning of the New York session.
The latest leg of a sudden fall during the early North American session followed the release of monthly jobs report from the US and Canada. In fact, the headline NFP showed that the US economy added 245K new jobs in November, down from 610K previous (revised from 638K) and worse than 469K anticipated.
The disappointing reading, to some extent, was offset by a fall in the unemployment rate, which edged lower to 6.7% as against 6.8% expected and October's 6.9%. The data did little to provide any respite to the US dollar bulls, which remained depressed near two-and-a-half-year lows.
On the other hand, Canadian monthly employment details came in better-than-expected and showed that the economy created 62K new jobs in November. Adding to this, the unemployment rate unexpectedly dropped to 8.5% during the reported month, from 8.9% recorded in the previous month.
This comes on the back of the recent bullish run in crude oil prices, which provided an additional boost to the commodity-linked loonie. This, in turn, exerted some fresh downward pressure on the USD/CAD pair and might have already set the stage for an extension of the bearish trend.
Technical levels to watch
|Today last price||1.2859|
|Today Daily Change||-0.0009|
|Today Daily Change %||-0.07|
|Today daily open||1.2868|
|Previous Daily High||1.2941|
|Previous Daily Low||1.2852|
|Previous Weekly High||1.3112|
|Previous Weekly Low||1.2972|
|Previous Monthly High||1.337|
|Previous Monthly Low||1.2923|
|Daily Fibonacci 38.2%||1.2886|
|Daily Fibonacci 61.8%||1.2907|
|Daily Pivot Point S1||1.2833|
|Daily Pivot Point S2||1.2798|
|Daily Pivot Point S3||1.2744|
|Daily Pivot Point R1||1.2922|
|Daily Pivot Point R2||1.2976|
|Daily Pivot Point R3||1.3011|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.