- Canadian Dollar enjoyed a decent run against the US Dollar, and gained over the past couple of days.
- USDCAD traded lower and if there are more positives to follow, then the pair may head further down.
- US nonfarm payrolls report will be released by the US Department of Labor, which may spike moves in the USDCAD pair.
- The most important one will be the Canadian employment Change released by the Statistics Canada.
The US dollar traded down against the Canadian Dollar, and posted a low of 1.3635. There was a support trend line, which was breached by sellers to take the USDCAD pair down. If the pair corrects higher from the current levels, then the same broken trend line could stall gains.
A lot depends on the releases, which are scheduled in a few minutes, including the US NFP and the Canadian employment change.
On the downside, a break below 1.3630 may call for more losses in the short term towards 1.3600.
Canadian Employment Change
There are a couple of monster releases in the US and Canada today. The most important one that could affect the USDCAD pair is the Employment Change, which is a measure of the change in the number of employed people in Canada. It will be reported by the Statistics Canada.
The market is expecting a change of 5.5K in Jan 2016, compared with the last change of more than 22K. Any bad reading may have an immense effect on the Canadian Dollar.
The USDCAD pair may trade higher depending on the release, and not to forget we have the US nonfarm payrolls by the US Department of Labor that presents the number of new jobs created during the previous month. We can keep an eye on this one for moves in USDCAD as well.