USD/CAD holds positive ground above 1.4300 ahead of US, Canadian labour market data

• USD/CAD trades with mild gains near 1.4305 in Thursday's late American session. 
• Canada's Ivey PMI shows activity decreasing in January. 
• Investors will closely monitor the US and Canadian labour market reports, which are due later on Friday. 

The USD/CAD pair posts modest gains around 1.4305 during the late American session on Thursday, bolstered by a mild bounce in US yields. The markets might turn cautious amid the ongoing uncertainty surrounding US President Donald Trump's trade policies and ahead of the release of the US and Canadian January labour market reports.

Trump delayed his orders to impose 25% tariffs on Canada for 30 days. However, the threat of US trade tariffs remains in place and any signs of escalating renewed trade tensions between the US and Canada could exert some selling pressure on the Loonie. 

Additionally, Thursday's downbeat Canadian economic data weighed on the Canadian Dollar (CAD). Canada's Ivey Purchasing Managers Index (PMI) data showed that Canadian economic activity contracted for the first time in five months in January as employment increased at a slower rate and prices rose.

Investors will keep an eye on the Canadian employment reports. Canada is projected to add far fewer jobs in January compared to December, down to 25K from 90.9K, and the Canadian Unemployment rate is estimated to tick up to 6.8% from 6.7%.

On the US front, economists expect the US economy to have added around 170,000 jobs in January, marking a significant slowdown from 256,000 gain in December. The unemployment rate is forecast to hold steady at 4.1%, suggesting continued resilience in the labour market despite recent economic headwinds.