USD/CAD spikes to session tops on dismal Canadian jobs data, lacks follow-through

• Canadian economy shed 24K jobs in July; unemployment rate jumps to 5.7%.
• Softer US PPI figures kept the USD bulls on the defensive and capped gains.
• Pickup in Oil prices underpinned Loonie and seemed to exert some pressure.

The USD/CAD pair rallied around 60-70 pips in the last hour and refreshed session tops, beyond mid-1.3200s in reaction to the disappointing release of Canadian jobs data.
 
The commodity-linked currency - Loonie initially gained some follow-through traction on Friday amid a goodish pickup in Crude Oil prices, which coupled with a subdued US Dollar price-action, collaborated to the pair's weaker tone for the second consecutive session.

Dismal Canadian jobs data inspired bulls

The pair, however, stalled its pullback from multi-week tops - set earlier this week - and caught some aggressive bids following the release of Canadian employment details, showing that the number of employed people unexpectedly decreased by 24K in the month of July.
 
Adding to the disappointing headline reading, the unemployment rate jumped to 5.7% as compared to 5.5% previous and expected, which exerted some additional downward pressure on the Canadian Dollar and prompted some aggressive short-covering move around the major.
 
The intraday spike, however, lacked any strong follow-through and remained capped below the 1.3300 handle in the wake of softer-than-expected US core Producer Price Index, which fell 0.1% on a monthly basis and eased to 2.1% yearly rate in July.
 
It will now be interesting to see if the pair is able to capitalize on the intraday spike or meets with some fresh supply at higher levels as the key focus remains on the incoming trade-related headlines, which has been a key factor influencing the broader market risk sentiment.

Technical levels to watch