USD/CAD snaps four-day uptrend above 1.3200 as Oil price edges higher past $80.00, US/Canada jobs eyed

• USD/CAD takes offers to refresh intraday low during the first daily fall in five.
• Oil price snaps two-day uptrend with mild losses near multi-day high.
• US Dollar bulls struggle to keep the reins amid pre-NFP anxiety, mixed Fed talks and data.
• Month-end consolidation joins dicey markets to prod Loonie pair buyers ahead of US NFP, Canada employment data.

USD/CAD refreshes intraday low as it drops to 1.3230 heading into Monday’s European session. The Loonie pair’s latest weakness could be linked to the recovery in prices of Canada’s biggest export earner, namely WTI crude oil, as well as the US Dollar’s positioning for this week’s top-tier. Also, the market’s month-end consolidation and the Canadian Dollar’s (CAD), known as the Loonie, preparations ahead of Friday’s top-tier Canada employment report for July, add strength to the downside bias.

That said, WTI crude oil recovers from the intraday low of $79.95 to $80.25 by the press time as it prints the first daily loss in three. In doing so, the black gold cheers the hopes of more energy demand due to China's stimulus, one of the world’s biggest Oil consumers. Also fueling the black gold’s price could be the hopes of Saudi Arabia’s extension of production cuts.

Elsewhere, Canadian GDP for June improved to 0.3% MoM on Friday, versus revised down figures of 0.1% prior, which in turn contrasts with downbeat US Core Personal Consumption Expenditure (PCE) Price Index for June to keep the USD/CAD bears hopeful. It’s worth noting that Federal Reserve Bank of Minneapolis President Neel Kashkari flagged fears of job losses and slower growth during the weekend interview, which in turn prod the Fed hawks and weigh on the Loonie pair prices.

It should be noted that upbeat prints of China’s official Manufacturing PMI for July and announcements of stimulus to conserve and boost consumer demand joined receding hawkish bets about the major central banks to let the markets be optimistic and weigh US Dollar.

Against this backdrop, US Dollar Index (DXY) licks its wounds near the three-week high of around 101.70-80 while S&P500 Futures stay lackluster at 4,605 after refreshing the yearly high the last week. That said, US Treasury bond yields edge higher by the press time.

Looking ahead, USD/CAD pair may witness further downside as traders prepare for the monthly employment data from the US and Canada. Also important are the US ISM Manufacturing and Services PMIs for July.

Technical analysis

Failure to stabilize beyond a two-month-old resistance line, around 1.3245 by the press time, directs USD/CAD bears toward the 21-DMA support of around 1.3220.