Summary:

• Canadian employment change 32.3k vs 20.1k exp and 15.4k prior
• Full time jobs +68.3k vs -39.3k prior
• USDCAD falls near to 6-week low; S-H-S in play

 Whilst the Lion’s share of the attention this afternoon has gone to the US NFP report, CAD traders in particular will have a keen interest on the Canadian equivalent. The data on the labour market from North of the border was undoubtedly strong with the the employment change for last month showing 32.3k jobs added – well above the 20.1k exp and the 15.4k previously.    

 The rise in total employment was also supported by an increase in permanent jobs which is a pleasing sign of strength and sustainability. Source: xStation

One of the key areas to look to in the Candian jobs data is the composition of the jobs with the number of full-time and part time roles added or lost often revealing a fairer reflection of the labour market than the headline on its own. On this front today’s release is especially pleasing with the full-time jobs number increasing by 68.3k after a drop of 39.3k previously. The part time jobs fell by 35.9k after a rise of 54.7k last time out and together this paints a pleasing picture as far as the sustainability and quality of the jobs added are concerned. 

The picture as far as wages are concerned was also pretty pleasing with small gains seen here. Total average hourly wages and a core measure which focuses on manufacturing and utilities both edged higher although the latter remains something of a laggard to the former. 

 Total wages for Canada remain close to their highest level in the past decade although a “core” reading is lagging below somewhat. Source: XTB Macrobond

The market reaction has seen the Canadian dollar move higher with USDCAD falling down to level not seen since late February. The pair looks set for a 4th consecutive lower close and in breaking below the 1.2815 level earlier this week a potentially key support was taken out.  

 A longer term head and shoulders pattern may be in play with a possible neckline seen around 1.2815. This would target quite a large move lower with 1.2505 a possible target should it play out in a textbook fashion. Source: xStation