• Rallying oil prices underpin Loonie and exert some downward pressure.
• A modest USD pullback further contributes to the ongoing downfall.
• Traders now eye second-tier economic data for some fresh impetus.
The USD/CAD pair remained under some selling pressure for the third consecutive session on Thursday and dropped to fresh weekly low, around the 1.3415-10 region in the last hour.
After once again failing to make it through the key 1.3500 psychological mark, the pair witnessed some long-unwinding pressure on Wednesday amid a solid bounce in Oil prices, amid intensifying tensions in the Middle East.
The positive momentum extended through the early European session on Thursday, which was seen as one of the key factors underpinning demand for the commodity-linked currency and exerting downward pressure on the major.
Meanwhile, the latest leg of a downtick over the past hour or so could further be attributed to a modest US Dollar downtick, which continues to be weighed down by the ongoing slide in the US Treasury bond yields.
It would now be interesting to see if the pair is able to find any buying interest at lower levels or the current pullback sets the stage for a further near-term depreciating move, confirming a bearish break through a short-term trading range.
Moving ahead, Thursday’s economic docket features the release of manufacturing sale and ADP employment change data from Canada, which along with some second-tier US economic data will be looked upon for some impetus.
Later during the US trading session, a scheduled speech by the BoC Governor Stephen Poloz might influence the Canadian Dollar and further collaborate towards producing some short-term trading opportunities.
Technical levels to watch