BREAKING: CAD jumps after jobs data

Jobs report for August from Canada was released today at 1:30 pm BST. The report was expected to show a 20k increase in total employment as well as pick-up in unemployment rate from 5.5% in July to 5.6% in August. However, actual data came in much stronger than expected with total employment growing by almost 40k. What's more, this increase was almost entirely driven by full-time jobs! Unemployment rate stayed unchanged at 5.5%.

Canada, jobs report for August.

• Employment change: +39.9k vs +20k expected (-6.4k previously)
  • Full-time: +32.2k vs +1.7k previously
  • Part-time: +7.8k vs -8.1k previously
• Unemployment rate: 5.5% vs 5.6% expected (5.5% previously)

Given how strong the data was, it should not come as a surprise that CAD gained. Taking a look at USDCAD chart at H1 interval, we can see that the pair slumped following the release and broke below the 50-hour moving average (green line) as well as the short-term upward trendline.