USD/CAD finds takers under 1.33

Oil prices retreated from 16-month high, thus helping the USD/CAD pair retake 1.33 handle.

The pair dropped to a low of 1.3287 earlier today before trimming losses to trade around 1.3305 levels.

Focus on oil & US, Canada jobs data

The focus remains on oil prices, although the direct correlation between the Canadian dollar and oil could weaken after the US, Canada jobs data are released.

The US non-farm payrolls data is expected to show the economy added 174K jobs in November, while the average hourly earnings growth slowed slightly to 0.3% m/m from 0.4%. Meanwhile, Canada labor data would be released at the same time as well.

The story does not end there as the Baker Hughes oil rig count will be released in the late NY session. That could move oil prices and the USD/CAD pair.

USD/CAD Technical Levels

A break above the 50-DMA hurdle of 1.3329 would open doors for 1.3357 (Nov 30 low) and 1.3381 (5-DMA). On the other side, Sep 9 low of 1.3265 could offer support, which, if breached would expose 1.3188 (100-DMA) under which the losses could be extended to 1.3083 (200-DMA).