“¢ A modest USD uptick helps stall the intraday slide ahead of the 1.30 handle.
“¢ Bullish oil prices underpinned Loonie and kept a lid on any attempted recovery.
“¢ Traders now look forward to Canadian manufacturing sales for fresh impetus.
The USD/CAD pair held on to its weaker tone through the mid-European session, albeit has managed to rebound around 15-20 pips from daily lows.
After an initial uptick to a four day high level of 1.3065, the pair met with some fresh supply and for now, seems to have snapped three consecutive days of losing streak. However, a modest US Dollar rebound helped the pair to find some support ahead of the key 1.30 psychological mark.
With investors still digesting the latest US tariffs on around $200 billion worth of Chinese imports, the USD uptick lacked any strong conviction and did little to provide any additional boost to the pair’s attempted intraday recovery.
Adding to this, the ongoing bullish run in crude oil prices, which tends to underpin demand for the commodity-linked currency – Loonie further collaborated towards keeping a lid on any meaningful up-move, at least for the time being.
Moving ahead, traders now look forward to the release of Canadian manufacturing sales data, the key highlight from today’s relatively thin economic docket, for some fresh impetus during the early North-American session.
Technical levels to watch
The 1.30 handle might continue to protect the immediate downside, which if broken is likely to accelerate the slide towards 1.2975 support area. On the upside, the 1.3060-65 region now becomes an immediate hurdle, above which the pair is likely to aim towards reclaiming the 1.3100 handle.
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