USD/CAD: Canadian Dollar Subdued On Mixed Canadian Construction Data

 | Apr 08, 2019 09:51

The Canadian dollar is steady in the Monday session. Currently, USD/CAD is trading at 1.3358, down 0.20% on the day. On the release front, Canadian construction numbers were a mix. Housing permits improved to 193,000, up from 173,000 a month earlier. This reading matched the forecast. Building permits plunged 5.7%, well below the forecast of a 2.0% gain. In the U.S., factory orders are expected to decline 0.5%, after two straight gains.

On Friday, the U.S. and Canada posted key employment numbers. U.S. nonfarm payrolls came in at 196,000, easily beating the estimate of 172,000 in March. Still, this release is significantly lower than the December and January releases, both of which were above the 300,000 level. Wage growth dipped to 0.1%, shy of the estimate of 0.3%. In Canada, employment declined by 7,200 in March, after a huge increase of 55,900 in February.

The Canadian economy has been affected by the trade war between the U.S. and China, especially the manufacturing and export sectors. With talks between the two super-economies continuing, there is optimism that China and the U.S. will reach a deal, and that could boost the Canadian dollar. There were reports last week that an agreement is 90% complete, with the remaining issues including enforcement mechanisms and the removal of trade tariffs.

USD/CAD Fundamentals

Monday (April 8)

  • 8:13 Canadian Housing Starts. Estimate 193K. Actual 193K
  • 8:30 Canadian Building Permits. Estimate 2.0%. Actual -5.9%
  • 10:00 US Factory Orders. Estimate -0.5%

Tuesday (April 9)

  • 10:00 US JOLTS Job Openings. Estimate 7.54M

*All release times are DST

*Key events are in bold

USD/CAD for Monday, April 8, 2019