USD/CAD retakes 1.25 mark, focus remains on today’s key macro data

Haresh Menghani FXStreet

• Attempts a tepid recovery as USD rebounds.
• CAD further weighed down by weaker oil prices.
• Focus on today’s important US/Canadian macro data.

The USD/CAD pair staged a modest recovery from 2-1/2 month lows and might now be looking to build on its momentum back above the key 1.2500 psychological mark.

The pair extended overnight bearish break below the weekly trading range and touched an intraday low level of 1.2483 during the Asian session on Friday. However, a pickup in the US Dollar demand, supported by an uptick in the US Treasury bond yields, stall the pair's downslide.

Meanwhile, crude oil retreated a bit from 2015 highs and was seen weighing on the commodity-linked currency - Loonie, eventually supporting the pair's rebound from the lowest level since Oct. 20.

Traders also seemed inclined to lighten their bets ahead of today's important macro releases from the US and Canada. Hence, a bout of short-covering could also be one of the factors contributing to the pair's recovery of around 20-pips from lows.

The release of US monthly jobs report (NFP) will be the next focal point and grab all the attention later during the early NA session. Today's economic docket also features the release of Canadian employment details and trade balance data, along with the US ISM non-manufacturing PMI.

Technical levels to watch

Immediate resistance is now pegged near the 1.2530-35 area, above which a fresh bout of short-covering could assist the pair to head back towards testing 100-day SMA resistance near the 1.2595-1.2600 region.

On the flip side, weakness below 1.2485-80 zone could drag the pair further towards mid-1.2400s, which if broken is likely to extend the downslide towards sub-1.2400 level.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.