“¢ Retracing US bond yields seemed to cap USD up-move.
“¢ Bullish oil prices further collaborate towards keeping a lid.
“¢ Focus shifts to US data, Fedspeak and BOC Poloz’s speech.
The USD/CAD pair traded with a mild positive bias for the third consecutive session on Wednesday, albeit remained well below one-year tops set last Friday.
The pair quickly reversed an early dip to an intraday low level of 1.3293 and regained positive traction on the back of some renewed buying interest surrounding the US Dollar, which might now be looking to build on overnight rebound from two-week lows.
The uptick, however, seemed lacking strong conviction, with a combination of negative factors keeping a lid on any meaningful up-move. The ongoing downfall in the US Treasury bond yields, coupled with fears of a full-blown US-China trade war seemed to hinder any strong USD up-move.
Adding to this, the prevailing strong bullish sentiment around crude oil prices, which tends to underpin demand for the commodity-linked currency – Loonie, might further contribute towards capping the bullish momentum.
It would now be interesting to see if the pair is able to attract any follow-through buying interest or continues with its consolidative price action, within a broader trading range held over the past one-week or so.
Later during the early North-American session, the release of US durable goods orders data will be looked upon to grab some short-term trading opportunities ahead of a scheduled speech by the Fed Governor Randal Quarles and BOC Governor Stephen Poloz.
Technical levels to watch
A sustained move beyond the 1.3335 immediate hurdle is likely to accelerate the up-move back towards 1.3380-85 zone en-route the 1.3400 handle. On the flip side, any meaningful retracement below the 1.3300 handle might continue to find support near the 1.3265 area, below which the pair could be headed back towards testing the 1.3200 round figure mark.
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