USD/CAD: Canadian Dollar Subdued On Mixed Canadian Construction Data

The Canadian dollar is steady in the Monday session. Currently, is trading at 1.3358, down 0.20% on the day. On the release front, Canadian construction numbers were a mix. improved to 193,000, up from 173,000 a month earlier. This reading matched the forecast. plunged 5.7%, well below the forecast of a 2.0% gain. In the U.S., factory orders are expected to decline 0.5%, after two straight gains.

On Friday, the U.S. and Canada posted key employment numbers. U.S. nonfarm payrolls came in at 196,000, easily beating the estimate of 172,000 in March. Still, this release is significantly lower than the December and January releases, both of which were above the 300,000 level. Wage growth dipped to 0.1%, shy of the estimate of 0.3%. In Canada, employment declined by 7,200 in March, after a huge increase of 55,900 in February.

The Canadian economy has been affected by the trade war between the U.S. and China, especially the manufacturing and export sectors. With talks between the two super-economies continuing, there is optimism that China and the U.S. will reach a deal, and that could boost the Canadian dollar. There were reports last week that an agreement is 90% complete, with the remaining issues including enforcement mechanisms and the removal of trade tariffs.

USD/CAD Fundamentals

Monday (April 8)

  • 8:13 Canadian Housing Starts. Estimate 193K. Actual 193K
  • 8:30 Canadian Building Permits. Estimate 2.0%. Actual -5.9%
  • 10:00 US Factory Orders. Estimate -0.5%

Tuesday (April 9)

  • 10:00 US JOLTS Job Openings. Estimate 7.54M

*All release times are DST

*Key events are in bold

USD/CAD for Monday, April 8, 2019

USD/CAD for April 7-9, 2019.

USD/CAD for April 7-9, 2019.

USD/CAD, April 8 at 9:10 EST

Open: 1.3384 High: 1.3387 Low: 1.3354 Close: 1.3358

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.3125 1.3200 1.3290 1.3383 1.3445 1.3552

USD/CAD showed little movement in the Asian session and posted small losses in European trade

  • 1.3290 is providing support
  • 1.3383 was tested earlier in resistance. It is a weak line
  • Current range: 1.3290 to 1.3383

Further levels in both directions:

  • Below: 1.3290, 1.3200 and 1.3125
  • Above: 1.3383, 1.3445, 1.3552 and 1.3662

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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