The Canadian dollar is range-bound for a second successive day. In the North American session, the pair is trading at 1.3084, up 0.13% on the day. In Canada, there was one minor event on the calendar. Labor Productivity jumped 9.8%, easily beating the estimate of 6.5%.
ADP Nonfarm payrolls miss expectations
The US released ADP Nonfarm payrolls, ahead of the official nonfarm payrolls report, which will be released on Friday. The indicator rose to 428 thousand in August, up from 167 thousand beforehand. However, this figure was not as positive as it might seem at first glance, since the forecast stood at 1.25 million jobs created. Will the official nonfarm payrolls report follow suit and fall well short of the estimate? If so, it could put strong downward pressure on the struggling US dollar.
Canada also releases key August employment numbers at the same time on Friday (12:30 GMT). Analysts are projecting that the economy will create 262.5 thousand jobs, a respectable number but well below the July reading of 418.50 thousand. With both the US and Canada releasing job numbers on Friday, we could see some significant movement from USD/CAD before the weekend.
USD/CAD Technical
- 1.3106 is under pressure in resistance. This is followed by resistance at 1.3143
- 1.3013 is the first support line, protecting the symbolic 1.30 level. The next support level is 1.2957
- The pair continues to trade below the 10-day MA, which is situated just below resistance at 1.3143
