• A modest pickup in the USD demand helped find support near the 1.3400 handle.
• Mostly upbeat US/Canadian data did little to provide any meaningful impetus.
• Bullish oil prices seemed to be the only factor keeping a lid any further up-move.
The USD/CAD pair rallied over 30-pips during the early North-American session and has now recovered a major part of its early slide to weekly lows.
The pair stalled its overnight rejection slide from the vicinity of the key 1.3500 psychological mark and managed to find some decent support near the 1.3400 handle amid a modest pickup in the US Dollar demand.
The rebound in the US Treasury bond yields helped the greenback to regain positive traction and the uptick got an additional boost following the release of mostly better than expected second-tier US economic releases.
Meanwhile, traders shrugged off upbeat Canadian releases, albeit bullish Oil prices continued underpinning the commodity-linked currency – Loonie and turned out to be the only factor capping any further gains.
Hence, it would be prudent to wait for a follow-through buying before traders start positioning for any further intraday up-move as the focus now shifts to a scheduled press conference by BoC Governor Stephen Poloz.
Technical levels to watch