USD/CAD challenges 1.3150 on upbeat NFP

The greenback is sparing following July’s strong Payrolls, sending USD/CAD to daily highs near the 1.3150 area.

USD/CAD bid after data

The pair is flirting with weekly highs in the mid-1.3100 after US Non-farm Payrolls have surprised markets to the upside, showing the economy added 255K jobs in July vs. 180K initially forecasted and June’s 291K (revised from 287K). The unemployment rate stayed put at 4.9% vs. forecasts for a drop to 4.8%.

On the Canadian side, poor labour market figures helped lifting spot further, with the Employment Change decreasing by 31.2K vs. an estimated gain of 10.0; the jobless rate has come in unchanged at 6.9% vs. an expected drop to 6.8%.

USD/CAD significant levels

As of writing the pair is advancing 0.81% at 1.3127 and a break above 1.3253 (high Jul.27) would aim for 1.3313 (200-day sma) and then 1.3575 (50% Fibo of the 2016 down move). On the other hand, the immediate support aligns at 1.2993 (low Aug.4) followed by 1.2983 (55-day sma) and finally 1.2857 (low Jul.15).