Loonie Weakens As Canada Job Growth Slows

Trading 02 nov 2018 Donner votre avis

The Canadian dollar fell against its most major opponents in the European session on Friday, after a data showed that the economy added fewer jobs than forecast in October.

Data from Statistics Canada showed that employment increased by 11,200 jobs in October after rising by 63,300 jobs in September.

Economists had forecast an increase of 15,000 jobs for the month.

Unemployment rate fell 0.1 percentage points to 5.8 percent from 5.9 percent in September. Economists had expected the rate to remain unchanged from the previous month.

Separate data showed that Canadian trade deficit widened more than forecast in the month of September.

The report said the trade deficit widened to C$0.4 billion in September, higher than the C$0.2 billion shortfall expected by economists. The trade balance showed a deficit of C$0.5 billion in August.

Imports fell 0.4 percent, while exports edged down 0.2 percent.

The currency traded mixed against its major counterparts in the Asian session. While it rose against the greenback and the yen, it fell against the euro and the aussie.

The loonie retreated to 86.13 against the yen, after rising to a 9-day high of 86.61 at 3:00 am ET. If the loonie falls further, 84.00 is likely seen as its next support level.

Data from the Bank of Japan showed that Japan monetary base rose 5.9 percent on year in October, coming in at 501.619 trillion yen.

That was unchanged from the previous month, which also saw a 5.9 percent jump.

The loonie declined to a 9-day low of 1.4980 against the euro, from a high of 1.4910 hit at 2:45 am ET. Next key support for the loonie is seen around the 1.51 region.

Final data from IHS Markit showed that the euro area manufacturing sector expanded at the slowest pace in more than two years in October.

The manufacturing Purchasing Managers' Index for Eurozone fell to a 26-month low of 52.0 from 53.2 in September.

The loonie reversed from an early 8-day high of 1.3049 against the greenback, falling to 1.3110. On the downside, 1.32 is likely seen as the next support level for the loonie.

Data from the Labor Department showed stronger than expected U.S. job growth in the month of October.

The Labor Department said non-farm payroll employment surged up by 250,000 jobs in October after rising by a downwardly revised 118,000 jobs in September. Economists had expected an increase of about 190,000 jobs.

On the flip side, the loonie advanced to 0.9425 against the aussie, from more than a 5-week low of 0.9480 hit at 1:00 am ET. The loonie is poised to find resistance around the 0.93 mark.

Data from the Australian Bureau of Statistics showed that Australia retail sales rose a seasonally adjusted 0.2 percent on month in September, coming in at A$26.892 billion.

That was shy of expectations for an increase of 0.3 percent, which would have been unchanged from the August reading.


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