The Canadian dollar is slightly higher in the Friday session. Currently, USD/CAD is trading at 1.3383, up 0.18% on the day. The spotlight is on employment numbers on both sides of the border. In the U.S. nonfarm payrolls came in at 196,000 easily beating the estimate of 172,000 in March. Still, this estimate 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 this week that an agreement is 90% complete, with the remaining issues including enforcement mechanisms and the removal of trade tariffs. The optimism over the trade talks has buoyed share prices in China, with the China 50 index rising to its highest level since March 2018 earlier this week.
Is the U.S. economy experiencing a slowdown? Key indicators have pointed lower, raising concerns about the strength of the economy. Retail sales and durable goods orders recorded declines and the trend continued on Wednesday. ADP (NASDAQ:ADP) nonfarm payrolls plunged to 129,000 down from 183,000 in the previous release. If nonfarm payrolls and wage growth are soft, the greenback could lose ground.
USD/CAD for Friday, April 5, 2019
USD/CAD, April 5 at 9:10 EST
Open: 1.3358 High: 1.3403 Low: 1.3349 Close: 1.3383
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 gains 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
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