The USDCAD pair has made a partial recovery and remains above the 1.3370 level.

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• USD/CAD recovers some ground and holds above the 1.3370 mark.

The pair currently trades last at 1.33700.

The previous day high was 1.3394 while the previous day low was 1.332. The daily 38.2% Fib levels comes at 1.3366, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3348, expected to provide support.

The USD/CAD pair consolidates its recent gains near 1.3370 in the early Asian session. The downbeat Canadian employment data triggers a weakening in the Loonie across the board. Investors will digest the data in this quiet week in terms of economic events ahead of the US Consumer Price Index (CPI) on Thursday.

On Friday, Statistics Canada revealed that the Canadian economy unexpectedly lost 6,400 jobs in July. Meanwhile, the Unemployment rate rose to 5.5%. The figure has increased for three consecutive months since COVID. Additionally, the Canadian Dollar didn’t benefit from an increase in oil prices following the softer Canadian data.

Money markets now anticipate a 28% likelihood of a rate rise in September, down from 32% before the report. Markets now expect another rate rise by the end of the year, down from 80% before the report, according to Reuters. However, investors will keep an eye on inflation and second quarter growth ahead of the next monetary policy meeting scheduled for September 6.

On the US Dollar front, the US employment data showed more indications of a softening labour market. The Nonfarm Payrolls report revealed that the US economy added 187,000 jobs in July. The June figures were revised lower to 185,000, the lowest reading since December 2020.

In addition, the Unemployment Rate decreased to 3.5% from 3.6%, and the annual wage inflation, as measured by the change in Average Hourly Earnings, came in at 4.4%, surpassing the market’s forecast of 4.2%. The U6 Unemployment Rate decreased to 6.7%, whereas the Labour Force Participation Rate remained unchanged at 62.6%.

Market participants will digest the data on Friday due to the absence of the economic data release from Canada on the Bank holiday. The attention will shift to the US Consumer Price Index (CPI) for July and the Produce Price Index (PPI) later this week. Market players anticipate a 0.2% monthly increase in US CPI. The data will be critical for determining a clear movement for the USD/CAD pair.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3372 at the time of writing. Pair opened at 1.3378 and is trading with a change of -0.04 % .

The pair is trading above its 20 Daily moving average @ 1.3227, above its 50 Daily moving average @ 1.3279 , below its 100 Daily moving average @ 1.3402 and below its 200 Daily moving average @ 1.3456

The previous day high was 1.3394 while the previous day low was 1.332. The daily 38.2% Fib levels comes at 1.3366, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3348, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3334, 1.3289, 1.3259
• Pivot resistance is noted at 1.3408, 1.3439, 1.3483

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