USD/CAD slumped to 1.2350 on NFP

The greenback is sharply lower vs. its Canadian neighbor on Friday, relegating USD/CAD to record fresh lows in the mid-1.2300s, levels last seen in June 2015.

USD/CAD weaker on data

Spot quickly broken below the 1.2400 key support for the first time in almost 2 years in response to the poor results from the US labour market for the month of August, where the economy created less jobs than initially forecasted (156K vs. 180K) and inflation wages showed once again lack of upside traction.

The pair is posting its second consecutive session with losses following a strong buying interest around the Canadian Dollar following solid GDP figures released earlier in the week and prospects of further tightening by the Bank of Canada as soon as this month’s meeting.

Ahead in the day, Markit’s manufacturing PMI is next on tap followed by the critical ISM manufacturing and the US consumer sentiment measured by the Reuters/Michigan index. In Canada, RBC’s manufacturing PMI is only expected later in the session.

USD/CAD significant levels

As of writing the pair is retreating 0.82% at 1.2384 facing the next support at 1.2341 (2017 low Sep.1) seconded by 1.2124 (low Aug.16 2015) and then 1.1916 (low May 14 2015). On the upside, a break above 1.2518 (10-day sma) would expose 1.2603 (10-day sma) and finally 1.2664 (high Aug.31).