USD/CAD plummets to over 1-month lows, below 1.3200 handle post-US/Canadian jobs data
- US economy added only 130K new jobs in August as against 158K expected.
- Stronger wage growth data does little to inspire the USD bulls, at least for now.
- Canadian employment details bettered expectations and exert further pressure.
The USD/CAD pair tumbled nearly 50-pips in the last hour, breaking below the 1.3200 handle to hit over one-month lows in reaction to softer US headlines NFP print.
The pair met with some aggressive supply and finally broke below the 50-day SMA support following the release of the latest US monthly jobs report, which showed that the economy added 130K new jobs in August as compared to 158K expected and the previous month's downwardly revised reading of 159K.
The US Dollar weakened across the board in reaction to disappointing headline NFP, though stronger than expected average hourly earnings growth data - rising 0.4% and 3.2% on a monthly and yearly basis respectively - now seemed to be the only factor that might help limit any further downside, at least for the time being.
Meanwhile, the commodity-linked currency Loonie was further boosted by Canadian employment details, showing that the number of employed people rose sharply by 81.1K in August as against 15K expected and fall of 24.2K in the previous month, though was partly offset by weaker Crude Oil prices.
It will now be interesting to see if the pair is able to find any support at lower levels or the current downfall marks a fresh bearish breakdown as the focus now shifts to the Fed Chair Jerome Powell's scheduled speech, due later during the US trading session.
Technical levels to watch