Canadian Dollar Extends Gain After Strong Jobs Data
October 09 2020 - 6:11AM
RTTF2
The Canadian dollar extended its early rally against its major
rivals in the European session on Friday, after a data showed that
the nation's job growth accelerated in September and the jobless
rate fell, signaling an economic recovery from the pandemic
crisis.
Data from Statistics Canada showed that employment rose by
378,200 jobs in September following an increase of 245,800 jobs in
August.
Economists had expected employment to grow by 150,000 jobs.
The unemployment rate dropped to 9.0 percent in September from
10.2 percent in August. Economists had expected the employment rate
to fall by 9.8 percent.
The loonie hit more than a 3-week high of 1.3133 against the
greenback, up from a low of 1.3198 hit at 5:45 pm ET. On the
upside, immediate resistance is possibly seen near the 1.29
region.
The loonie rose back to 1.5510 against the euro, heading towards
more than a 4-week peak of 1.5506 seen earlier in the session.
Should the loonie strengthens further, it is likely to test
resistance around the 1.52 level.
The CAD/JPY pair hit more than a 3-week high of 80.60. The
loonie is poised to challenge resistance around the 82.5 mark.
Data from the Ministry of Internal Affairs and Communications
showed that Japan household spending fell 6.9 percent on year in
August - coming in at 276,360 yen.
That was in line with expectations following the 7.6 percent
annual decline in July.
In contrast, the loonie dropped against the aussie, with the
pair trading at 0.9488. The loonie may locate support around the
0.96 level.
Data from the Australian Bureau of Statistics showed that
Australia home loans rose a seasonally adjusted 13.6 percent on
month in August - coming in at A$16.28 billion.
That was in line with expectations following the 10.7 percent
increase in July.
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