USDCAD hammered down to weekly low, below mid-1.3500s post-US/Canadian jobs data

• USDCAD plummets back closer to the weekly low and is pressured by a combination of factors.
• A rise in the US jobless rate overshadows the upbeat NFP print and weighs heavily on the USD.
• Stellar Canadian jobs data, rallying oil prices underpin the Loonie and add to the selling bias.

The USDCAD pair adds to its heavy intraday losses and sinks the weekly low, below mid-1.3500s in reaction to the US/Canadian employment details.

The US Dollar maintains its heavily offered tone after the closely-watched US NFP report showed that the added 261K jobs in October, much higher than the 200K anticipated. Adding to this, the previous month's reading was revised higher from 263K to 315K. This, however, was offset by a slight disappointment from the unemployment rate, which rose to 3.7% during the reported month against expectations for an uptick to 3.6% from 3.5% in September. The mixed data fails to impress the US Dollar bulls or lend any support to the USDCAD pair.

The Canadian Dollar, on the other hand, gets a strong boost from mostly upbeat Canadian jobs data. Statistics Canada reported that the economy added 108.3K jobs in October, smashing expectations for a 10K rise by a huge margin. Additional detail revealed that the jobless rate held steady at 5.2% against expectations for an uptick to 5.3%. This comes amid an intraday rally in crude oil prices, which is seen as another factor underpinning the commodity-linked Loonie and further contributes to the USDCAD pair's steep intraday decline.

Apart from the aforementioned fundamental factors, the latest leg down witnessed over the past hour or so could also be attributed to some technical selling below the 1.3600 mark. Hence, it remains to be seen if the downfall marks a fresh bearish breakdown or is seen as a buying opportunity amid a more hawkish stance adopted by the Federal Reserve. Nevertheless, the USDCAD pair remains on track to end in the red for the third successive week.

Technical levels to watch