CAD Steadies as Strong US Jobs Data Offset Rising Oil Prices
The Canadian Dollar has steadied in early European trading hours on Monday as robust US jobs data offset rising oil prices. The USD/CAD pair is currently trading around 1.3835, showing little movement.
A stronger-than-expected US August Nonfarm Payrolls (NFP) report showed the addition of 162,000 jobs, beating market expectations and keeping the Unemployment Rate steady. This has boosted the chances of a Federal Reserve rate hike at the September policy meeting to around 60%, according to Fed funds futures.
On the other hand, Canada's economy lost 41,700 jobs in August, with the Unemployment Rate remaining unchanged at 6.4%. Analysts at Scotiabank note that the immediate direction for the Canadian Dollar will depend on the upcoming US labour market release, which is expected to dictate price action.
Technical analysis shows USD/CAD remains bearish below the 100-day SMA, with initial resistance emerging at the 20-day Bollinger middle band around 1.3860 and support seen at the lower Bollinger band around 1.3760.