USD/CAD retreats from daily highs, stays in green above 1.3250

• US Dollar Index fails to hold above the 97 mark amid falling T-bond yields.
• WTI corrects the latest rally on Tuesday.

The USD/CAD pair advanced to a fresh daily high of 1.3283 in the early NA session but struggled to push higher as the greenback came under a renewed selling pressure. At the moment, the pair is up 0.2% on a daily basis at 1.3265.

Earlier today, the commodity-sensitive loonie weakened against its rivals as crude oil rally lost its steam. After posting gains in five straight trading days, the barrel of West Texas Intermediate reversed its course on Tuesday and was last seen trading at $55.60, losing 0.8% on a daily basis.

On the other hand, although it looked like the US Dollar Index was attempting to retake the 97 handle, the currency lost its tractÅŸon as the 10-year T-bond yield fell sharply and was last seen down more than 1% on the day. The DXY is currently at 96.64, posting losses for the fourth straight day. The only data from the U.S. today showed that the builder’s confidence improved with the NAHB Housing Market Index rising to 62 in February from 58 in January but couldn’t help the greenback attract investors’ attention.

Later in the session, markets will be looking at the weekly API crude oil stock data. Although it’s unlikely, a sharp reaction to the data in crude oil prices in the post-settlement trade could impact the pair’s price action.

Technical levels to consider