USDCAD dips on disappointing US jobs data, tariff concerns linger | investingLive

The USDCAD moved lower following weaker-than-expected U.S. jobs data, which included significant downward revisions to prior months. This halted the recent rally, which had been fueled by the U.S. announcement of a 35% tariff on Canadian imports, a move that had weighed on the CAD.

Before the jobs release, the pair had traded to its highest level since May 22, reaching 1.3879. However, the disappointing data triggered a sharp decline, taking the price back below the 100-day moving average at 1.3818. Notably, this level had been breached to the upside yesterday for the first time since April, making the reversal technically discouraging.

Also disappointing was the inability to test the 38.2% retracement of the 2025 trading range at 1.3923—a level that has capped rallies within the broader downtrend. The pair fell short by about 44 pips, adding to the bearish sentiment.

On the downside, the decline saw the price moved back into the range that could find the pair until this week (see the red box on the chart above). However, once the reached the swing area between 1.3749–1.3760, buyers have reentered. The low today reached 1.3762, before bouncing modestly. The current price is around 1.3786. Getting back above the 1.3797 level and staying above would be needed to show that the buyers and sellers are still battling, with the buyers still in play.

While the failure to extend higher is a negative technical signal, tariff-related downside risks for the Canadian economy may help limit further CAD strength. That said, the tariffs may also weigh on the U.S. economy, complicating the broader outlook. The combination from the uncertainties, leads toward the need to watch the section and the technicals for the trading clues.