USD/CAD reclaims 1.3100 handle amid suppressed oil prices

Renewed US Dollar buying interest helped the USD/CAD pair to recover from early weakness to 1.3080 region and move back above 1.3100 handle. 

The pair on Thursday failed to benefit from disappointing release of US ISM manufacturing PMI and witnessed a minor retracement from multi-week highs as intense selling pressure around crude oil has been denting demand for the commodity-linked currency - the Canadian Dollar. 

Later during NA trading session on Friday, all eyes would remain focused on the release of much-awaited US monthly jobs report, which is traditionally known to trigger substantial volatility across financial markets. Meanwhile, Canadian releases of monthly trade balance data and labor productivity data for Q2 2016 are likely to be overshadowed by the key NFP data.

Technical levels to watch

Fresh buying interest above 1.3145-50 immediate resistance should assist the pair immediately towards 1.3200 handle, which if cleared might continue boosting the pair further towards July swing high resistance near 1.3250-55 region.

Meanwhile on the downside, sustained weakness below 1.3080 support now seems to drag the pair through 1.3065-60 intermediate support and extend the downslide towards 1.3000 psychological mark.