USD/CAD climbs higher toward 1.32 boosted by upbeat US NFP data

• Nonfarm Payrolls in the US increased more than expected in October.
• US Dollar Index pulls away from daily lows, approaches 97.50.
• Coming up: Manufacturing PMI data from Canada and the US.

The USD/CAD pair gained traction in the last hour as the USD gathered strength on the back of upbeat data and rose to a fresh daily high of 1.3196. As of writing, the pair was up 0.2% on the day at 1.3185.

NFP data fuels USD rally

The most anticipated data of the week on Friday showed that Nonfarm Payrolls (NFP) in the United States increased by 128,000 in October and surpassed the market expectation of 89,000 by a wide margin. More importantly, September's reading got revised up to 180,000 from 136,000 while the annual wage inflation stayed unchanged at 3%. 

With the initial reaction, the US Dollar Index turned north and erased its daily losses. As of writing, the index was up 0.1% on the day at 97.42.

Later in the session, the IHS Markit will be publishing the final reading of the Manufacturing Purchasing Managers' Index (PMI) for both the US and Canada. Additionally, the Institue for Supply Management (ISM) will publish its own Manufacturing PMI as well.

Technical levels to watch for