Daily Currency Update

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The Loonie falls after stronger numbers than expected in the American economy.

CAD - Canadian Dollar

The USD/CAD pair initially rose following stronger employment data in the U.S. However, technically speaking, the USD/CAD hit a resistance of 1.3192 and it is falling again, making the Loonie stronger. Key levels of resistance for today are 1.3225 and 1,3237. On the flip side, key levels of support are 1.3163 and 1.3146.

In the U.S, October job growth came in stronger than expected. Non-farm payrolls increased by 128,000 jobs, which was higher than the 90,000 jobs expected in October. However, manufacturing dropped 36,000 positions, the most since October 2009. At the same time, the unemployment rate was little changed at 3.6 percent, the U.S. Bureau
of Labor Statistics reported few minutes ago. Job growth beating expectations made the EUR/USD pair shed 20 pips from 1.1152 to 1.1132 within a few minutes, and overall it has fallen 0.17 percent, making the U.S. dollar stronger.

Federal Reserve Bank of New York John C. Williams and Vice-Chairman of the Board of Governors of the Federal Reserve System Richard H. Clarida will give a speech at around noon EST later today.

Key Movers

Crude oil has risen around 1.3 percent in overnight trading after stronger than expected Chinese factory data. In China, the Caixin manufacturing PMI came in at 51.7, while it was expected at 51.

According to Bloomberg, despite the signs of resilience in Chinese manufacturing in the latest Caixin index reading, an official gauge dropped to the lowest level since February as factories throughout the region stagnate. The main driver of that continues to be trade uncertainty. Hopes of a lift from a “phase one” deal between the U.S. and China were tempered by comments from officials in Beijing casting doubt over the prospects for a long-term agreement.

China continues to cast doubt on a comprehensive long-term trade deal, even as the two sides get close to a phase-one agreement. Officials told recent visitors to Beijing they won't change on the difficult issues. In China, they are concerned that President Trump may back out of even a limited deal.

Expected Ranges

USD/CAD: 1.3146 - 1.3191 ▲

EUR/CAD: 1.4642 - 1.4710 ▲

GBP/CAD: 1.7000 - 1.7075 ▲

AUD/CAD: 0.9062 - 0.9107 ▲

NZD/CAD: 0.8464 - 0.8497 ▲