USD/CAD remains on the defensive below 1.3400, investors await US NFP data

USD/CAD remains under some selling pressure around 1.3376 on the weaker USD.
The US ISM Manufacturing Purchasing Managers' Index came in better than expected in January.
Canada’s S&P Global Manufacturing PMI arrived at 48.3 in January from 45.4 in December.
The US Nonfarm Payrolls (NFP), Unemployment Rate, and Average Hourly Earnings will be due later on Friday.

Lallalit Srijandorn FXStreet

The USD/CAD pair remains on the defensive below the 1.3400 mark during the early Asian trading hours on Friday. The pair snaps a four-week winning streak as the US Dollar (USD) loses its recovery momentum and drops to 103.00. Traders await the US Nonfarm Payrolls (NFP) report for January. This event might trigger the volatility in the market. USD/CAD currently trades near 1.3376, down 0.09% on the day.

Data released on Thursday revealed that the US Manufacturing Purchasing Managers' Index (PMI) improved sharply in January. The US ISM Manufacturing PMI came in at 49.1 versus 47.1, beating the market expectation of 47.0. The overall growth was mainly driven by renewed growth in new orders and a slowdown in production contraction. The upbeat Manufacturing PMI figure failed to lift the Greenback as traders digested the information from the January Fed meeting.

On Thursday, the Canadian S&P Global Manufacturing PMI improved to 48.3 in January from the previous reading of 45.4. Earlier this week, the nation’s real Gross Domestic Product (GDP) expanded by 0.2% in November. The growth numbers indicated a resilience in the Canadian economy and could take the pressure off the Bank of Canada (BoC) to cut interest rates. Meanwhile, a decline in oil prices might weigh on the commodity-linked Loonie as Canada is the largest oil exporter to the United States.

Market participants will closely monitor the US labor market data on Friday. The US Nonfarm Payrolls (NFP) is estimated to see 185k job additions in January. The Unemployment Rate is expected to rise to 3.8%, and finally, the Average Hourly Earnings are projected to show an increase of 0.3% MoM. Also, the US Factory Orders and the final reading of the Michigan Consumer Sentiment will be due. Traders will take cues from these figures and find trading opportunities around the USD/CAD pair.

USD/CAD

Overview
Today last price	1.3376
Today Daily Change	-0.0013
Today Daily Change %	-0.10
Today daily open	1.3389

Trends
Daily SMA20	1.3435
Daily SMA50	1.3432
Daily SMA100	1.3553
Daily SMA200	1.3478

Levels
Previous Daily High	1.3464
Previous Daily Low	1.3368
Previous Weekly High	1.3535
Previous Weekly Low	1.3414
Previous Monthly High	1.3542
Previous Monthly Low	1.3229
Daily Fibonacci 38.2%	1.3405
Daily Fibonacci 61.8%	1.3428
Daily Pivot Point S1	1.335
Daily Pivot Point S2	1.331
Daily Pivot Point S3	1.3253
Daily Pivot Point R1	1.3446
Daily Pivot Point R2	1.3504
Daily Pivot Point R3	1.3543

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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