“¢ The post-NFP USD uptick turns out to be short-lived amid softer wage growth data.
“¢ A modest uptick in oil prices underpinned Loonie and collaborated to the downfall.
The USD/CAD pair faded a knee-jerk bullish spike to fresh weekly tops and tumbled around 40-pips in the post-NFP trading action.
The US Dollar did get a minor boost, lifting the pair to an intraday high level of 1.3490, after the headline NFP print smashed even the most optimistic estimates and came in to show that the US economy added 263K new jobs in April.
Adding to this, the unemployment rate unexpectedly dropped to 3.6%, albeit was largely offset by softer wage growth data. In fact, Average hourly earnings rose by 0.2% m/m and 3.2% from a year earlier, missing consensus estimates and matching previous month’s readings.
The greenback trimmed a part of a modest, which coupled with a modest uptick in crude oil prices underpinned the commodity-linked currency – Loonie and further collaborated to the pair’s sharp intraday slide in the last hour, to levels below mid-1.3400s.
It would now be interesting to see if the pair is able to find any buying interest at lower levels or the current slide marks the end of the pair’s recent positive momentum as market participants now look forward to Fedspeaks for some fresh trading impetus.
Technical levels to watch
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