USD/CAD oscillates around 1.2840 ahead of employment data, oil struggles above $93.00

USD/CAD is juggling around 1.2840 as investors await US and Canadian employment data.
Subdued oil prices on weaker Caixin Manufacturing PMI weakened the Canadian dollar.
The loonie region may show job additions by 20k against the lay-off of 43.2k jobs in June.

Sagar Dua FXStreet

The USD/CAD pair has turned sideways after printing a two-day high of 1.2856 on Monday. In the first trading session of August, the asset displayed a responsive buying action after slipping below the cushion of 1.2790. A responsive buying action drove the asset swiftly higher, and greenback bulls aim to recapture the weekly high of 1.2900 sooner.

The asset defended the downside break after oil prices plunged on Monday as weaker manufacturing activities triggered oil bears. A subdued performance by the Caixin Manufacturing PMI resulted in a steep fall in the oil prices. The economic data landed at 50.4, lower than the expectations of 51.5 and the prior release of 51.7. It is worth noting that China is the world's largest consumer of oil, and a plunge in Chinese manufacturing activities is sufficient to impact oil prices.

Also, Canada is the leading oil exporter to the US, and a meaningful drop in oil prices strengthened the greenback against the Canadian dollar.

This week, the employment data from the US and Canada is of utmost importance. The US Nonfarm Payrolls (NFP) is seen lower at 250k than the former print of 372k. This has resulted in a downside move in the US dollar index (DXY). The DXY printed a fresh-three-week low at 105.28 on Monday. Also, the US jobless rate is seen unchanged at 3.6%.

On the loonie front, the Net Change in Employment is seen at 20k, while the economy showed a jobless situation in June of 43.2k. The Unemployment Rate may increase to 5% from the prior release of 4.9%.

USD/CAD

Overview
Today last price	1.2842
Today Daily Change	0.0048
Today Daily Change %	0.38
Today daily open	1.2794

Trends
Daily SMA20	1.2934
Daily SMA50	1.2854
Daily SMA100	1.2777
Daily SMA200	1.2724

Levels
Previous Daily High	1.2855
Previous Daily Low	1.2789
Previous Weekly High	1.2947
Previous Weekly Low	1.2789
Previous Monthly High	1.3224
Previous Monthly Low	1.2789
Daily Fibonacci 38.2%	1.2814
Daily Fibonacci 61.8%	1.283
Daily Pivot Point S1	1.277
Daily Pivot Point S2	1.2746
Daily Pivot Point S3	1.2704
Daily Pivot Point R1	1.2837
Daily Pivot Point R2	1.2879
Daily Pivot Point R3	1.2903

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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