USD/CAD quickly reverses the post-NFP dip to 3-week lows, refreshes session tops

   •  Mixed US jobs data does little to ease the prevalent USD bearish pressure.
   •  Disappointing Canadian jobs details/trade balance data helps to bounce off lows.
   •  Weaker oil prices further weigh on Loonie and provide an additional boost.

The USD/CAD pair finally broke down of its recent consolidative trading range and refreshed three week low in the last hour, albeit quickly recovered thereafter.

The pair met with some fresh supply during the early North-American session and momentarily slipped below the 1.3100 handle in reaction to mixed US monthly jobs data. The unemployment rate ticked higher to 4% and average hourly earnings registered a modest growth of 0.2% m/m.

The headline NFP print, however, came in to show that the US economy added 213K new jobs in June, surpassing few of the optimistic estimates and previous month's reading was also revised upward to show an additional of 244K new jobs as against 223K reported previously. 

Meanwhile, the negative details from the US jobs report, to a larger extent, were largely negated by an unexpected jump in the Canadian unemployment rate, which seems to have offset a larger than expected rise in the number of new people employed in June. 

Adding to this, Canadian trade balance data for May also came in to show a larger than expected deficit of $2.77 billion, which coupled with weaker crude oil prices exerted some additional downward pressure on the commodity-linked currency - Loonie.

Hence, the downtick was quickly bought into, helping the pair to rally over 60-pips from intraday low and move back to its three-day-old trading range to currently trade around the 1.3135-40 region.

Technical levels to watch

Immediate resistance is pegged near the 1.3160 area, above which the pair is likely to aim back towards reclaiming the 13200 handle before retesting weekly tops, around 1.3225 level.

On the flip side, weakness back below the 1.3100 handle might now turn the pair vulnerable to extend its downfall towards 1.3065-60 intermediate support en-route the key 1.30 psychological mark.