USDCAD Overnight Range 1.2048-1.2142    

The highly anticipated US (and Canadian) employment reports were greeted with a resounding “meh”. NFP was right on consensus and the unemployment rate is 5.4%. EURUSD rose and fell and is currently back to its pre-release level.The Canadian report was worse than expected, which was actually expected, shedding 19,700 jobs. The details revealed that the data isn’t as bad as it looks with full-time gaining 46,900 jobs.  All the losses were part-time. USDCAD trading was erratic but has settled close to where it was before the news.

The overnight session ahead of the US non-farm payrolls release is usually quiet and for most currency pairs, that was the case. But not for Sterling.The Conservative party surprised pollsters and squeaked out a majority win. GBPUSD rallied from 1.5265 to over 1.5500 before drifting lower on profit taking. EURUSD dropped as EURGBP trades were reversed.

In Asia, the RBA Monetary Policy Report contrasted with Tuesday’s RBA statement. On Tuesday, the bias toward cutting rates was omitted while some forecasts and statements in the MPR heightened rate cut risks. AUDUSD fell and then weak Chinese trade data added to its woes.

USDCAD technical outlook

The intraday technicals are modestly bullish while trading above 1.2090 supported by yesterday’s breach of resistance at 1.2050 looking for a break of the April downtrend line (Currently 1.2160) to extend gains to 1.2270.  If 1.2160 caps the upside, expect additional 1.1960-1.2160 consolidation.

Today’s Range 1.2080-1.2160

Chart: USDCAD 4 hour with intraday downtrend shown