When is the Canada employment data and how could they affect USD/CAD?

Canada Employment Overview

The Canadian labour market data for October is due for release today at 13:30 GMT. Statistics Canada is expected to show that employers laid off 2.5K workers, against hiring of 60.4K job-seekers in September.

Signs of slowdown in the job market are expected to be unfavorable for the Canadian Dollar (CAD), given that cooling labor market conditions prompt the need of more interest rate cuts by the Bank of Canada.

Meanwhile, the Canadian Unemployment Rate is expected to remain steady at 7.1%. This is the highest level seen since July 2021.

Apart from the job data, investors will focus on Average Hourly Wages, an economic indicator that reflects chance in wage growth. In September, the wage growth measure rose by 3.6% on an annualized basis.

How could the Canadian employment data affect USD/CAD?

The USD/CAD pair trades in a tight range around 1.4100 ahead of the Canadia labour market data release. Broadly, the Loonie pair is bullish as it holds the breakout of the previous resistance zone placed in a range between 1.4016-1.4080.

The upward-sloping 20-day Exponential Moving Average (EMA) near 1.4027 suggests that the near-term trend is bullish.

The 14-day Relative Strength Index (RSI) trades around 70.00, indicating a strong bullish momentum.

Looking up, the USD/CAD pair could rise towards the round-level figure of 1.4200 and the April 9 high of 1.4274 if it breaks above the November 6 high of 1.4140

On the flip side, the asset could slide towards the round level of 1.3600 and June 16 low of 1.3540 if it breaks below the August 7 low of 1.3722.