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The Canadian Dollar started Monday's trading session sharply lower against its United States counterpart after news of Saudi Arabia expelling the Canadian ambassador crossed wires.

Saudi Arabia has chose to freeze all new trade and investment deals between the kingdom and Canada while retaining its right to take other measures, Saudi Press Agency (SPA) reported.

However, the currency pair's upside momentum reversed throughout the Asia/Pacific trading hours.

Nearly immediately after the news, Saudi Twitter accounts began tweeting similarly phrased messages of their "concern" for Canada's own treatment of First Nation members and the need for Quebec to gain independence. Although local unemployment rate is forecasted to decrease to 5.9% from the previous 6.0%, July's net change in employment is expected to lower to 19.0k as opposed to June's 31.8k.

Nevertheless, "Canada will always stand up for the protection of human rights", she continued, "including women's rights, and freedom of expression around the world".

The dispute appears centered around tweets by Canadian diplomats calling on the kingdom to "immediately release" women's rights activists recently detained by the kingdom. The Kingdom of Saudi Arabia expresses its absolute and categorical rejection of the position of the Canadian Government.

"Canada is gravely concerned about additional arrests of civil society and women's rights activists in Saudi Arabia, including Samar Badawi".

Women in Saudi Arabia are celebrating the lifting of a ban allowing them to drive for the first time
Image While Saudi Arabia has lifted a ban on women driving the country has arrested women's rights activists

Saudi Arabia said on Sunday that it is ordering Canada's ambassador to leave the country and freezing all new trade and investment transactions with Canada in a spat over human rights. It continued that use of the phrase "immediate release" is both "reprehensible and unacceptable", and noted that "any further step from the Canadian side...will be considered as acknowledgement of our right to interfere in the Canadian domestic affairs".

The arrests come weeks after more than a dozen women's right campaigners were detained and accused of undermining national security and collaborating with enemies of the state. "Our government will never hesitate to promote these values and believes that this dialogue is critical to worldwide diplomacy".

But the 32-year-old has simultaneously pursued an aggressive foreign policy, while cracking down on dissent and cementing his grip on power.

"The rupture in Saudi diplomatic relations with Canada underscores how the "new" Saudi Arabia that Mohammed bin Salman is putting together is in absolutely no mood to tolerate any form of criticism of its handling of its domestic affairs", said Kristian Ulrichsen, Middle East fellow at Rice University's Baker Institute for Public Policy in Texas. His wife, Ensaf Haidar, and their three children became Canadian citizens on Canada Day last month and live in Quebec.

Saudi investments in Canada include G3 Global Holdings Ltd., a joint venture between Bunge Ltd. and Saudi Agricultural & Livestock Investment Co., which purchased the former Canadian Wheat Board in 2015.

"There isn't a strong bilateral trade relationship and poking the Trudeau government likely resonates with Saudi's hawkish regional allies".