Canadian data came out today (7/6 US session 8:30AM EDT) all beating expectations:

1) Building permits m/m for May: 7.4% vs. forecast of 0.7%, and improving from an upwardly revised -4.4% for March.

2) Employment change for June came in at 7.3K vs. forecast of 5.1K similar to the  7.7K in May.

3) Unemployment rate in June surprised with a drop to 7.2% from 7.3%.

Still, the CAD lost ground to the USD after the poor NFP brought about risk-aversion which is positive for the USD and negative for commodity currencies like the CAD.

4) There was poor data however. June’s Ivey PMI reading fell below the 50 level to 49, suggesting contraction in business activity. This was a huge drop from May’s 60.5, and missed forecast of 55.4.

USD/CAD rallied above a short-term range resistance at 1.0155. The 1.02 level is the next resistance pivot as seen in the 1H chart.

Fan Yang CMT is a forex trader, educator and Chief Currency Analyst of FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.