Home Daily Commentaries Revised employment numbers and crude oil are weakening the Loonie

Revised employment numbers and crude oil are weakening the Loonie

Daily Currency Update

CAD - Canadian DollarThe Loonie loses slightly versus the Aussie and Kiwi dollar, and the USD/CAD rises 0.04 percent despite employment in Canada increasing by 73,700 jobs from June to July according to the July ADP, Canada National Employment Report. Ahu Yildirmaz, vice president and co-head of the ADP Research Institute said, "…the job gains were broadly distributed across the majority of industries with trade, leisure and hospitality, and construction leading the way." Additionally, he mentioned, "We saw strong job growth in July." However, the total of jobs added in June was revised down from 30,400 to -9,600. Technically speaking, the USD/CAD pair is testing key resistance levels, but it is trading above the 200 moving average of a long-term chart (daily chart). Key resistance levels are 1.3333 and 1.3366. On the other side, key supports are 1.3316, 1.3296, and 1.3283. The USD/CAD pair is trading right at the resistance level of 1.3333 at the time of this writing, as it has been pushed by crude oil weakness. Crude oil has fallen around 1.5 percent this morning.

Key Movers

According to Bloomberg, in the bond market in the U.S., the 2-year and 10-year treasury yield curve inverted, signaling that a recession is on the way, following signs of slowing in China and Germany. Investors fleeing riskier assets also pushed the 30-year yield to a record low. Germany is the largest economy in Europe and the growth engine of the euro-zone economy, but it was not only the economy that suffered from sluggish economic data. The British economy also shrank in the second quarter, as occurred in Sweden. On the other side, China, the world's No. 1 trading nation, has also shown signs of weakness. The EUR/USD pair falls 0.21 percent this morning to a critical support level 1.1110.

Expected Ranges

  • USD/CAD: 1.3283 - 1.3365 ▲
  • EUR/CAD: 1.4776 - 1.4885 ▼
  • GBP/CAD: 1.6120 - 1.6217 ▲
  • AUD/CAD: 0.9013 - 0.9058 ▲
  • NZD/CAD: 0.8573 - 0.8620 ▲