USD/CAD ticks higher as oil retreats in Asia

CAD is feeling the heat of a drop in oil prices, thus USD/CAD has ticked higher in the Asian session, although gains remain capped ahead of non-farm payrolls release.

Focus on oil and US payrolls release

Oil prices remain the main driven of the USD/CAD pair ahead of payrolls release. The US data is likely to show the economy added much lesser jobs in July than it did in June. The data could influence rate hike bets and overall demand for the US dollars.

Post payrolls release and before NY closing, the focus would shift to Baker Hughes US oil rig count figure, which is expected to affect oil prices and demand for CAD.

USD/CAD Technical Levels

The pair was last seen trading around 1.3027. A breach of immediate resistance at 1.3035 (resistance of trend line drawn from June 23 low & July 15 low) would open doors for 1.3068 (5-DMA) – 1.3112 (10-DMA). On the other hand, a breach of 1.30 could yield a move to 1.2974 (50-DMA) and 1.2945 (100-DMA).