USD/CAD rebounds above 1.3300 following sharp drop on jobs data
- Unemployment Rate in Canada ticked down to 5.5% in January.
- Nonfarm Payrolls in US rose by 225K to beat expectations.
- Crude oil extends losses to weigh on CAD.
The USD/CAD pair lost nearly 30 pips in a matter of minutes with the initial reaction to the US and Canada data but didn't have a difficult time erasing its losses. As of writing, the pair was trading at 1.3311, adding 0.2% on a daily basis.
USD/CAD fluctuates on labour market data
The data published by Statistics Canada on Friday revealed that the Unemployment Rate in Canada fell to 5.5% in January from 5.6% with the Net Change in Employment arriving at 34.5K to beat the market expectation of 15K by a wide margin. Although the CAD gathered strength on the data, falling crude oil prices and the broad-based USD strength helped the pair turn north.
The Nonfarm Payrolls in the US rose by 225,000 in January to surpass analyst' estimate for an increase of 160,000. Moreover, the Average Hourly Earnings rose 3.1% on a yearly basis. On a negative note, the unemployment rate ticked up to 3.6% from 3.5%. At the moment, the US Dollar Index is up 0.12% on the day at 98.60.
In the meantime, the barrel of West Texas Intermediate is down 1.4% on the day at $50.35 as investors continue to price the potential negative impact of the coronavirus outbreak on the global oil demand.
Ivery Purchasing Managers' Index from Canada and Consumer Credit Change from the US will be the last data releases of the week.
Technical levels to watch for