USD/CAD juggles above 1.3560 ahead of US/Canada Employment data, oil consolidates


  • USD/CAD struggles to find direction as investors seek Canadian employment data for fresh cues.
  • A resilient US labor market is likely to support the Fed’s decision of hawkish policy continuation for a longer period.
  •  Canada’s Employment Change for December is seen lower at 8K against 10.1K released earlier.

The USD/CAD pair is oscillating in a narrow range of 1.3560-1.3580 in the early Asian session. The Loonie asset has turned sideways after a rally from the psychological support of 1.3500. The US Dollar witnessed firmer strength from the market participants after the upbeat United States Automatic Data Processing (ADP) Employment Change data triggered a risk-aversion theme.

The US Dollar Index (DXY) soared to the crucial resistance of 105.00 as accelerating expectations of a secular hawkish monetary policy by the Federal Reserve (Fed) improved the safe-haven’s appeal. Also, it provided support for the 10-year US Treasury yields and pushed them above 3.72%. Meanwhile, S&P500 futures have picked some demand after a sell-off on Thursday, portraying a minor recovery in investors’ risk appetite.

As per the US ADP agency, the United States economy has generated employment for 235K job aspirants against the consensus of 150K. No doubt, firmer labor demand shows strength in an economy but in times of red-hot inflation it provides a meaningful reason to the Fed for avoiding consideration of interest rate cut-approach in the near time.

For more clarity on the status of the US labor market, investors will scrutinize the release of the US Nonfarm Payrolls (NFP) data, which will release on Friday.

Meanwhile, the Canadian Dollar will also display action on the release of the Employment data. According to the estimates, net addition in payrolls for December stands at 8K against 10.1K released earlier. The Unemployment rate may escalate marginally to 5.2%.

On the oil front, the oil price is displaying a rangebound action ahead of the release of the official US Employment data. The black gold could pick strength as the Covid-19 situation might find its peak sooner. It is worth noting that Canada is a leading exporter of oil to the US and higher oil prices support the Canadian Dollar.

USD/CAD

Overview
Today last price 1.3561
Today Daily Change -0.0020
Today Daily Change % -0.15
Today daily open 1.3581
 
Trends
Daily SMA20 1.3598
Daily SMA50 1.3525
Daily SMA100 1.3471
Daily SMA200 1.3143
 
Levels
Previous Daily High 1.3596
Previous Daily Low 1.347
Previous Weekly High 1.3612
Previous Weekly Low 1.3484
Previous Monthly High 1.3705
Previous Monthly Low 1.3385
Daily Fibonacci 38.2% 1.3548
Daily Fibonacci 61.8% 1.3518
Daily Pivot Point S1 1.3503
Daily Pivot Point S2 1.3424
Daily Pivot Point S3 1.3378
Daily Pivot Point R1 1.3628
Daily Pivot Point R2 1.3674
Daily Pivot Point R3 1.3753

 

 

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