USDCAD refreshes multi-week low, around 1.3465 area amid broad-based USD weakness

• USDCAD drops to its lowest level since September 22 amid the emergence of fresh USD selling.
• Diminishing odds for more aggressive Fed rate hikes, the risk-on impulse weighs on the buck.
• Softer crude oil prices might undermine the Loonie and could lend some support to the major.

The USDCAD pair struggles to capitalize on its intraday uptick and meets with a fresh supply near the 1.3555 region during the early European session on Monday. The downward trajectory drags spot prices to the 1.3465 area, or the lowest level since September 22 and is sponsored by the prevalent selling bias surrounding the US Dollar.

In fact, the USD Index, which measures the greenback's performance against a basket of currencies, adds to the post-NFP slump and turns negative for the second straight. The mixed results from the closely-watched US monthly jobs report fueled speculations that the Fed could slow the pace of future rate hikes. This, along with an intraday positive turnaround in the risk sentiment, is seen weighing on the safe-haven greenback.

The Canadian Dollar, on the other hand, might continue to draw support from the blockbuster domestic employment details. Apart from this, the emergence of some dip-buying around crude oil prices could underpin the commodity-linked Loonie and supports prospects for a further depreciating move for the USDCAD pair. Moreover, acceptance below the 50-day SMA, around the 1.3500 psychological mark adds credence to the negative outlook.

That said, China's commitment to maintaining its strict zero-COVID policy might have dashed hopes for an oil demand rebound at the world's top crude importer. This could act as a headwind for the black liquid and lend some support to the USDCAD pair, at least for the time being. In the absence of any major market-moving economic releases, the aforementioned fundamental factors will continue to play a key role in influencing the major.

Technical levels to watch