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  • USD/CAD is fluctuating in a narrow trading range on Tuesday.
  • WTI builds on Monday’s gains, climbs higher toward $40.
  • US Dollar Index consolidates Monday’s losses near 93.50. 

The USD/CAD pair dropped to its lowest level in more than two weeks at 1.3241 earlier in the day but erased the majority of its losses. As of writing, the pair was down only 0.07% on the day at 1.3255.

The sharp upsurge witnessed in crude oil prices helped the commodity-related loonie start the week on a strong footing. The barrel of West Texas Intermediate (WTI) gained more than 6% on Monday and continues to edge higher on Tuesday. At the moment, the WTI is up 1.25% on the day at $39.80, allowing the CAD to stay resilient against its rivals.

Eyes on US stimulus talks

On the other hand, although the US Dollar Index is having a tough time recovering Monday’s losses, it seems to have found its footing around mid-93.00s on Tuesday. Investors remain cautious while waiting for fresh developments surrounding stimulus negotiations in the US and the S&P 500 futures trade in the negative territory to confirm the souring market mood.

In the early American session, International Merchandise Trade data from Canada and JOLTS Job Openings and Trade Balance data from the US will be featured in the economic docket.

Additionally, FOMC Chairman Jerome Powell will be delivering his remarks on the current state of the US economy at an event at 1440 GMT.

Technical levels to watch for