Canadian Job Gains Strong - But Its All Part-Time!
On the face of it, the Canadian job gains in Jul look great at over 54k, but on closer inspection, we can see that this all came through part-time jobs. In fact, we saw an 82k rise in part-time while full time fell 28k so the good news is not that CAD friendly as it seems. Even so, the unemployment rate has fallen to 5.8% from 5.9%, yet this is not enough to pull the USD/CAD rate away from the upper 1.3000's.
We have however seen another push on 1.3100-20 being rejected today, though the lack of material pull-back leads us to believe another test is anticipated. As with all commentary on currencies, everything is leading to the USD at the moment and CAD resilience is starting to diminish, especially after the strong demand seen into 1.2950.
Looking beyond, should the 1.3120 level give way to stronger gains, 1.3200-10 and 1.3300-1.3400 are both areas which will prove strong resistance to the USD onslaught at the moment, but going into the weekend, initial levels (into 1.3200) are perhaps the most we can expect at this stage - assuming USD bulls maintain their appetite.