USD/CAD bounces off lows near 1.2740 on data

• CAD appreciated to fresh tops in the 1.2740 region post-data.
• USD trims part of its earlier gains and drops to 90.40/35 band.
• US Payrolls disappointed at 103K in March, jobless rate stayed at 4.1%.

The Canadian Dollar is trading on a firm note vs. its American neighbour on Friday, dragging USD/CAD to fresh lows in the 1.2740 region albeit gathering some upside traction soon afterwards.

USD/CAD offered on data

Spot tumbled to fresh lows on Friday after Canadian Employment Change surprised to the upside in March, rising by 32.3K jobs, while the unemployment rate stayed unchanged at 5.8%, matching prior surveys.

The US docket, instead, showed the economy added 103K jobs during last month vs. 190K initially forecasted. Further out, the jobless rate came in at 4.1% vs. a forecasted drop to 4.0%. Additionally, Average Hourly Earnings – a proxy for wage inflation – matched expectations at 2.7% YoY and 0.3% inter-month.

In the meantime, the pair is extending the weekly leg lower to levels last seen in late February, posting at the same time the fourth consecutive decline against the backdrop of rising risk-on trade and auspicious headlines from the NAFTA negotiations.

USD/CAD significant levels

As of writing the index is retreating 0.02% at 1.2749 facing immediate contention at 1.2722 (38.2% Fibo of the 2017 drop) followed by 1.2634 (200-day sma) and finally 1.2614 (low Feb.26). On the flip side, a surpass of 1.2841 (10-day sma) would target 1.2905 (21-day sma) en route to 1.2927 (50% Fibo of the 2017 drop).