USD/CAD hammered down to 1.3300 mark on stellar Canadian jobs data/surging oil prices
| • A blast of 94.1K new jobs in Nov. knocks Canada’s unemployment rate 40-year low.
• A sudden upsurge in crude oil prices further underpinned the Canadian Dollar.
• Disappointing NFP weighs on the USD and adds to the aggressive selling bias.
The USD/CAD pair tumbled over 100-pips and momentarily dipped below the 1.3300 handle in a knee-jerk reaction to stellar Canadian employment details.
According to the latest jobs report, the number of employed people unexpectedly rose by a whopping 94.1K in November, the highest since at least 1989 and probably the best ever, and the unemployment rate fell to a 40-year low level of 5.6%.
Meanwhile, the disappointment from the US NFP print exerted some downward pressure on the US Dollar, which coupled with a sudden upsurge in crude oil prices provided a strong lift to the commodity-linked Loonie and prompted some aggressive long-unwinding trade around the major.
Adding to this, possibilities of some short-term trading stops being triggered below a previous strong resistance, turned support, near the 1.3360-50 region, further collaborated towards aggravating the selling pressure during the early North-American session.
Technical levels to watch
A follow-through selling has the potential to continue dragging the pair further towards 1.3240-35 support en-route the 1.3200 round figure mark. On the flip side, the 1.3350-60 region again becomes immediate resistance to conquer, above which the pair is likely to head back towards reclaiming the 1.3400 handle.
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