USD/CAD holds steady above 1.3500 on BoC rate cut, weaker US Job Openings

• USD/CAD trades flat around 1.3505 in Thursday's early Asian session. 
• The BoC cut interest rates by 25 bps, bringing its policy rate to 4.25% on Wednesday. 
• JOLTS Job Openings fell to their lowest level in three and a half years in July, weighing on the USD.  

The USD/CAD pair trades on a flat note near 1.3505 during the early Asian session on Thursday. The Bank of Canada (BoC) cut interest rates as expected, while US Job Openings came in weaker than expected. Traders await the release of US August ISM Services PMI data on Thursday for fresh impetus, which is expected to ease to 51.1 from 51.4 in July.

The Bank of Canada (BoC) decided to cut its benchmark interest rate for the third consecutive time at its September meeting on Wednesday, as widely expected. The BoC governor Tiff Macklem said, "If inflation continues to ease broadly in line with our July forecast, it is reasonable to expect further cuts in our policy rate."  

During the press conference, BoC's Macklem stated that 25 basis points (bps) cut looked appropriate, adding that he's not seeing a big impact on the exchange rate from divergence with the US Federal Reserve (Fed) on rates.

Meanwhile, crude oil prices fell to the lowest level in nine months as downbeat US economic data and a sluggish Chinese economy raised concerns about a weaker global economy. It's worth noting that Canada is the largest oil exporter to the United States (US), and lower crude oil prices tend to have a negative impact on the CAD value.

Data released by the Labor Department on Wednesday reported that the Job Openings and Labor Turnover Survey showed that available positions fell to 7.67 million in July, compared with 7.91 million openings (revised from 8.1 million) seen in June and came in below the market consensus of 8.1 million.

The dovish comments from Atlanta Fed President Raphael Bostic might undermine the USD. Bostic stated that he is ready to start cutting interest rates even though inflation is still running above the US central bank's target. The markets are now pricing in nearly 57% possibility of a 25 basis points (bps) rate cut by the Fed in September, while the chance of a 50 bps reduction stands at 43%, according to the CME FedWatch tool. 

Looking ahead, the US Nonfarm Payrolls (NFP) for August will be released on Friday, which is projected to show an increase of 161,000. This event could offer some hints about the size of the Fed rate cut this year and give a clear trading opportunity to the USD/CAD pair.