USD/CAD posts modest gains around 1.3750, Canadian PMI, US Jobless Claims eyed

• USD/CAD trades in positive territory for the fifth consecutive day on Thursday.
• Selling pressure in oil prices dragged the commodity-linked Loonie lower.
• US ADP private payrolls for September came in below than expected.
• Traders will monitor Canadian Ivey PMI, and US Jobless Claims. 

The USD/CAD pair extends its upside around the mid-1.3700s during the early Asian session on Thursday. A fall in oil prices exerts some selling pressure to the Canadian Dollar (USD) and supports the USD/CAD pair. Markets turn cautious ahead of the US Nonfarm Payrolls on Friday, with the US economy expected to create 170,000 jobs in September.

That said, a sell-off in oil prices dragged the commodity-linked Loonie lower as the country is the leading oil exporter to the US. Earlier this week, a data release showed that the Canadian S&P Global Manufacturing PMI for September came in at 47.5 from 48.0 in the previous reading.

On the US Dollar front, US private payrolls for September rose by 89,000 from 180,000 in the previous reading, according to the Automatic Data Processing (ADP) reported on Thursday. This figure came in below the estimation of 153,000 and posted the lowest level since January 2021.

Meanwhile, the US ISM Services PMI dropped to 53.6 in September versus 54.5 prior, in line with the market consensus. In response to the data, the Greenback edges lower across the board. However, the bearish momentum in oil prices is offset by the US downbeat jobs data.

Looking ahead, market participants will monitor the release of US weekly Jobless Claims, Canadian trade data, and Canadian Ivey Purchasing Managers Index (PMI) for September. On Friday, the US Nonfarm Payrolls will be closely watched, followed by the Canadian job reports. Traders will take cues from these figures and find trading opportunities around the USD/CAD pair.