USD/CAD: Canadian Dollar Subdued On Mixed Construction Numbers


The Canadian dollar has ticked higher in the Monday session. Early in North American trade, is trading at 1.3335, up 0.10% on the day. On the release front, Canadian construction numbers were mixed. climbed to 216,000, marking a 5-month high. declined 0.2%, its weakest reading since June. In the U.S., the sole event is . The indicator is expected to improve to 7.22 million, after the previous release of 7.01 million. The U.S. will release a host of inflation indicators this week, starting with the on Tuesday.

The spotlight was on job numbers on Friday, with key indicators on both sides of the border. Canada’s economy added a stunning 94,100 jobs, crushing the estimate of 10,500. The unemployment rate dropped from 5.8% to 5.6%. The strong performance boosted the Canadian dollar on Friday, after losing ground for three straight days.

It was a completely different story in the United States. Nonfarm employment change was weaker than expected, plunging from 250,000 to 155,000. This was well off the forecast of 198,000. Wage growth remained stuck at 0.2%, missing the estimate of 0.3%. There was better news from the unemployment rate, which remained at a sizzling 3.7%. The data points to slowing growth in the U.S., which could lead to a change in monetary policy. The Federal Reserve minutes from the November meeting indicated that policy-makers discussed changing their stance of gradual increases rate increases. The markets are currently looking at one rate hike next year – just a few months ago, analysts were predicting up to rate hikes in 2019.

USD/CAD Fundamentals

Monday (December 10)

  • 1:30 BoC Deputy Governor Lane Speaks
  • 8:15 Canadian Housing Starts. Estimate 198K. Actual 216K
  • 8:30 Canadian Building Permits. Estimate -0.2%. Actual -0.2%
  • 10:00 US JOLTS Openings. Estimate 7.22M

Tuesday (December 11)

  • 8:30 US PPI. Estimate 0.0%
  • 8:30 US Core PPI. Estimate 0.1%

*All release times are DST

*Key events are in bold

USD/CAD for Monday, December 10, 2018

USD/CAD for Dec. 9-11, 2018.

USD/CAD for Dec. 9-11, 2018.

USD/CAD, December 10 at 8:50 EST

Open: 1.3322 High: 1.3341 Low: 1.3293 Close: 1.3335

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.3099 1.3198 1.3292 1.3382 1.3461 1.3552

In the Asian session, USD/CAD ticked higher but then retracted. The pair posted small gains in European trade and has posted further gains early in the North American session

  • 1.3292 is providing support
  • 1.3382 is the next resistance line
  • Current range: 1.3292 to 1.3382

Further levels in both directions:

  • Below: 1.3292, 1.3198 and 1.3099
  • Above: 1.3382, 1.3461, 1.3552 and 1.3696

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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