• 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.