Tuesday, May 30, 2023

Canadian Dollar Edges Lower Ahead Of Nonfarm Payrolls


The Canadian dollar has posted slight losses on Friday. In the North American session, is trading at 1.2408, down 0.17% on the day. The is on an upswing and USD/CAD has gained 0.95%, as the pair has erased most of the losses from a week earlier.

Canada’s manufacturing sector has been a bright spot, as it has expanded 11 straight months. is expected to rise to 57.4 in June, up from 57.0. A reading over the 50-level indicates growth.

US Nonfarm Payrolls expected to accelerate

The markets are focused on the June US employment report. are projected to rise to 700 thousand, compared to the May reading of 559 thousand. Still, investors are being cautious, as NFP has underperformed in the past two releases.

Another employment indicator that could be a market-mover today is US wage growth. The estimate for June YoY is a strong gain of 3.7%, compared to the May reading of just 2.0%. With many jobs lying vacant, employers have raised wages in hopes of luring workers to fill jobs. If wages jump sharply, we could see upcoming inflation numbers also rise, which is sure to get the attention of the Federal Reserve.

USD/CAD Technical

USD/CAD Daily Chart
  • There is weak resistance at 1.2440, followed by resistance at 1.2580
  • On the downside, there is a monthly support level at 1.2206. Below, there is support at 1.2202

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