USD/CAD holds positive ground near 1.3650 on better-than-expected US jobs data

• USD/CAD posts modest gains around 1.3645 in Wednesday’s early Asian session. 

• US JOLTS Job Openings rose to 7.76 million in May, stronger than expected. 

• Traders brace for the US June ADP Employment Change report, which is due later on Wednesday. 

The USD/CAD pair trades with mild gains near 1.3645 during the early Asian session on Wednesday. The US Dollar (USD) pares losses against the Canadian Dollar (CAD) after data showed a better-than-expected increase in labor market demand. The US ADP Employment Change report for June will take center stage later on Wednesday. 

US job openings unexpectedly rose in May, which provides some support to the Greenback as the Federal Reserve (Fed) will likely take its time to cut interest rates. US JOLTS Job Openings climbed to 7.76 million in May, compared to 7.395 million openings reported in April. This figure came in above the market expectation of 7.3 million.

Fed Chair Jerome Powell reiterated that the US central bank will wait for more data before it starts monetary policy easing, but he did not rule out a rate reduction in the July meeting, per Reuters. The Fed decided to hold the key borrowing rate steady again last month, keeping fed funds at the same range between 4.25% and 4.5%, where it’s been since December.

Meanwhile, Crude Oil prices lose ground amid easing Middle East geopolitical risks and a potential OPEC+ output increase in August. This could undermine the commodity-linked Loonie. However, the rebound in Crude Oil prices might cap the upside for the pair, as Canada is the largest oil exporter to the US, and higher crude oil prices tend to have a positive impact on the CAD value.