“¢ CAD remains supported by Friday’s surprisingly strong domestic GDP growth print.
“¢ Bullish oil prices further underpin Loonie and keep a lid on any attempted bounce.
“¢ The USD bulls seemed rather unaffected by the ongoing upsurge in the US bond yields.
The USD/CAD pair remained depressed at the start of a new trading week and is currently placed at 1-1/2 week lows, just below mid-1.3300s.
The pair struggled to register any meaningful recovery and was seen oscillating in a narrow trading band, consolidating Friday’s sharp intraday slide triggered by upbeat Canadian monthly GDP growth figures.
This coupled with the ongoing bullish run in crude oil prices, amid the prevalent risk-on mood supported by upbeat Chinese macro data, provided an additional boost to the commodity-linked currency – Loonie.
Meanwhile, some renewed US Dollar selling bias also failed to lend any support, though a strong follow-through upsurge in the US Treasury bond yields now seemed to help limit further downside, at least for the time being.
It would now be interesting to see if the pair is able to attract any buying interest at lower levels or bears maintain their dominant position and extend last week’s sharp retracement slide from over three-week tops, set on Thursday.
Meanwhile, today’s US economic docket – highlighting the release of monthly retail sales data and ISM manufacturing PMI, will now be looked upon for some fresh impetus later during the early North-American session.
Technical levels to watch
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