USD/CAD fell toward 1.3300 after mixed US NFP data
- Nonfarm payrolls (NFP) in the United States (US) increased less than expected in September.
- West Texas Intermediate (WTI) trades above $53 on Friday.
- US Dollar Index struggles to rise above the 99 mark.
With the initial reaction to the macroeconomic data releases from the United States (US) and Canada on Friday, the USD/CAD lost its traction and tested the 1.3300 handle. As of writing, the pair was down 0.23% on a daily basis at 1.3305.
Mixed market reaction to mixed data
The US Bureau of Labor Statistics (BLS) showed that nonfarm payrolls (NFP) increased by 136,000 in September and fell short of the market expectation of 145,000 and the annual wage inflation dropped to 2.9% from 3.2%. However, the fact that the unemployment rate fell to 3.5% from 3.7% and August's NFP reading got revised up to 168,000 from 130,000 helped the Greenback stay resilient against its rivals.
The US Dollar Index recovered toward the 99 mark with the initial reaction but failed to push above that level. As of writing, the index was virtually unchanged on the day at 98.90.
On the other hand, Statistics Canada reported that the trade deficit narrowed to $955 million in August from $1.4 billion in July and provided support to the CAD.
More importantly, rising crude oil prices helped the commodity-sensitive Loonie gather strength. Ahead of the Baker Hughes' weekly oil rig data, the barrel of West Texas Intermediate (WTI) rose above $53 and is adding nearly 1.5% on the day.
Technical levels to watch for