The Canadian Dollar Rose On Friday After Positive Job Data

The Canadian dollar rose against its major counterparts in the European session on Friday, as the economy created more jobs than expected in July, while unemployment fell.

Data from Canada's statistics showed that employment rose by 54,100 jobs in July, after adding 31,800 jobs in June. Economists had expected job growth of up to 17,000.

The unemployment rate fell 0.2 percentage points to 5.8 percent from 6 percent. The rate was expected to fall to 5.9 percent. Oil prices rose after the International Energy Agency raised its estimate of world oil demand growth next year by 110,000 barrels per day to 1.5 million barrels.

In its monthly oil market report, the International Energy Agency said new US sanctions against Iran could make keeping oil supplies in the world "very difficult."

Crude for September delivery rose $ 0.70 to $ 67.51 a barrel. The Canadian dollar showed mixed trading against the majors in the European session. While falling against the yen and the dollar, it rose against the euro and the Australian dollar.

The Canadian dollar rose to 0.9527 against the Australian dollar, a level not seen since June 2016. The Canadian dollar is likely to challenge resistance around the 0.94 level.

The RBA cut short-term inflation expectations but kept its outlook for growth broadly. In its quarterly statement on monetary policy, the outlook for GDP growth was broadly similar to that of the May statement.

After falling to more than a two-week low of 1.3123 against the US dollar at 4:15 pm Eastern time, the Canadian dollar reversed the trend and rebounded to 1.3038. If the Canadian dollar gains more, it is likely that 1.28 will be seen as the next resistance level.

The Canadian dollar rose to 1.4921 against the euro, its strongest level since May 30. On the upside, 1.47 is likely to be seen as the next resistance level in the CAD.

The Canadian dollar rebounded to 85.05 against the yen, from more than a two-week low of 84.43 mm at 3:45 am ET. The next resistance on the CAD is likely to be around 86.00.​

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