The Canadian dollar was hit hard on Wednesday as USDCAD bounced from a rising trendline connecting the 2007 and 2009 lows, keeping the pair within its two-month trading range of 1.0400/15-1.0746.The currency will face key event risk next Friday, as the Canadian net employment change for the month of December may rise for the second straight month, this time by 20,000 following an increase of 79,100 in November.
However, the unemployment rate is anticipated to hold steady near the 11-year high of 8.7 percent at 8.5 percent.
Nevertheless, since the employment change tends to be a very volatile release, this should have the greater impact on the Canadian dollar, with a surprise drop likely to weigh on the currency and an unexpectedly strong result likely to push it higher.
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