USD/CAD extends downside below 1.3600 on downbeat US ADP employment data

• USD/CAD extends the decline to around 1.3585 in Thursday’s early Asian session. 

• US June ADP private payrolls fell for the first time in two years. 

• The US Nonfarm Payrolls report for June will be in the spotlight later on Thursday. 

The USD/CAD pair trades in negative territory near 1.3585 during the early Asian session on Thursday. The US Dollar (USD) remains under selling pressure amid mounting US debt concerns, tariff policies uncertainty and rising interest rate cut bets. The US June Nonfarm Payrolls report will take center stage later on Thursday. 

Investors are concerned about US President Donald Trump's massive tax-and-spending bill, which could add 3.3 trillion in additional national debt. Rising fiscal worries have dampened optimism and weighed on the USD against the Canadian Dollar (CAD). 

Additionally, the US private payrolls fell in June for the first time in over two years, signaling possible headwinds in the upcoming jobs report and contributing to the Greenback’s downside. Data released by the Automatic Data Processing, Inc. (ADP) on Wednesday showed that private-sector payrolls decreased 33,000 in June after a downwardly revised 29,000 gain in May. This figure came in below the market consensus of 95,000. 

All eyes will be on the US employment data for June on Thursday. Economists expect data on Thursday to show the US NFP increasing by 110,000 in June. Also, the Unemployment Rate, ISM Services Purchasing Managers Index (PMI), and weekly Initial Jobless Claims will be released. 

Nonetheless, a decline in Crude Oil prices could undermine the commodity-linked Loonie and help limit the pair’s losses. It’s worth noting that Canada is the largest oil exporter to the US, and lower crude oil prices tend to have a negative impact on the CAD value.