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  • Canadian dollar declines in tandem with the US oil.
  • Dollar rebound amid risk-aversion boosts USD/CAD further.
  • Focus on US Retail Sales data and BOC rate decision.

The USD/CAD pair extends the bounce above 1.3950 in the European session this Wednesday, snapping a four-day losing streak. At the time of writing, the spot rises 0.70% to a new two-day high of 1.3978, with a big figure recovery staged from the daily low of 1.3874.

WTI price-action and BOC to drive the CAD  

The spot receives a double booster shot, as the bulls cheer broad-based US dollar recovery. The greenback draws the haven bids amid risk-off trading seen in the global equities. The US dollar index jumps back above the 99 handle, now gaining 0.22%.

Meanwhile, oil prices stalled its recovery and resumed the recent downtrend, pressuring the resource-linked Loonie and in turn offering fresh legs to the USD/CAD bounce. The barrel of WTI shaved-off the early recovery gains to now trade flat just above the 20 level.

The Canadian dollar also tracks the steep declines in other commodity-currencies, the Antipodeans. The aussie dollar, however, emerged the weakest amongst the resource-linked currency pack.

The CAD traders also turn cautious and resort to repositioning ahead of the Bank of Canada (BOC) Interest Rate Decision due later this Wednesday. The US Retail Sales data for March will also have a significant impact on the major.

USD/CAD technical levels to watch