USD/CAD steadies around 1.2560 as DXY bided mildly, oil rebounds

USD/CAD is oscillating around 1.2560 as investors await US NFP.
Lower ADP Employment Change numbers have raised the odds of lower NFP release.
Oil prices are expected to move higher on the demand recovery in China and renewed supply concerns.

Sagar Dua FXStreet

The USD/CAD pair is displaying back and forth moves in a 1.2557-1.2578 in the Asian session. A dead cat bounce has brought some bids in the asset, however, the lackluster performance will remain intact as investors are awaiting the US Nonfarm Payrolls (NFP).

Investors should brace for a compelling slippage in the payrolls as the US economy is maintaining the full employment levels from the last six months. Therefore, the employment generation is expected to elevate but at a diminishing rate. Also, the US Automatic Data Processing (ADP) Employment Change landed at 128k, principally lower than the estimates of 300k. Lower ADP Employment Change is also advocating a slippage in the appointment figures.

Loonie bulls have dominated the greenback the whole week as the Bank of Canada (BOC) elevated its interest rates by 50 basis points (bps). The BOC announced a jumbo rate hike considering the ramping-up inflation in the loonie region. Mounting inflationary pressures are eating the wallets of the households and an aggressive stance on rates was highly required.

On the oil front, oil prices are witnessing a correction after a sheep upside move. Going forward, the black gold is expected to remain in the grip of bulls amid renewed supply concerns on lost export of oil from Russia and recovery of demand in China post the withdrawal of restrictions. The reopening of Shanghai is expected to spurt the oil demand. The deadly duo of tight supply and demand recovery will keep the oil bulls underpinned.

USD/CAD

Overview
Today last price	1.2567
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.257

Trends
Daily SMA20	1.2827
Daily SMA50	1.2712
Daily SMA100	1.2699
Daily SMA200	1.2662

Levels
Previous Daily High	1.2686
Previous Daily Low	1.2564
Previous Weekly High	1.2885
Previous Weekly Low	1.2718
Previous Monthly High	1.3077
Previous Monthly Low	1.2629
Daily Fibonacci 38.2%	1.2611
Daily Fibonacci 61.8%	1.264
Daily Pivot Point S1	1.2528
Daily Pivot Point S2	1.2485
Daily Pivot Point S3	1.2406
Daily Pivot Point R1	1.2649
Daily Pivot Point R2	1.2729
Daily Pivot Point R3	1.2771

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

AUD/USD stays weak above 0.6900 after China’s trade data

AUD/USD struggles to capitalize on the previous day’s recovery and stays defensive on the 0.6900 level following the narrowing of trade surplus in China. Increased December Fed rate hike bets allows the US Dollar to pause its decline and weigh on the pair. US CPI data is next of note for the major.

USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.

Gold sticks to modest losses amid Fed hike bets; holds above $4,100 ahead of US CPI

Gold meets fresh supply, eroding a part of the previous day's strong gains to the $4,150 resistance zone, albeit it holds above the $4,100 mark heading into the European session. Firming US Federal Reserve rate-hike expectations turn out to be a key factor driving flows away from the non-yielding bullion. Meanwhile, the US Dollar struggles to lure buyers amid mixed signals regarding the state of diplomatic talks between the US and Iran, offering some support to the commodity as traders seem hesitant ahead of US consumer inflation figures.

Bitcoin hits lowest weekly close since August as short-term holders slip into losses

Bitcoin fell below $75,000 on Tuesday, after recording its lowest weekly close since August as selling pressure pushed recent buyers into losses.

This weeks’ two big inflation reports will offer perspective

Payrolls on Friday surprised with a big gain, 165,000 new jobs rather than the 65,000 forecast. Also the unemployment rate fell from 4.2% to 4.1% although average hourly earnings are up only 0.4% ($32.75). This weeks’ two big inflation reports will offer perspective. Tomorrow it’s CPI and on Friday, which is a Friday the 13th, it’s PPI.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.