“¢ Renewed USD buying interest helped regain positive traction on Tuesday.
“¢ Declining US bond yields/rebounding Oil prices kept a lid on further gains.
“¢ Upbeat US consumer confidence data does little to provide any impetus.
The USD/CAD pair remained well bid through the early North-American session, albeit struggled to extend the momentum and remained well below the key 1.3500 psychological mark.
The pair caught some aggressive bids on Tuesday and the initial leg of the positive move was triggered by a modest pickup in the US Dollar demand, which benefitted from weaker market sentiment amid persistent uncertainties over trade and the outlook for global economic growth.
However, a combination of negative forces kept a lid on any strong follow-through up-move for the major. A free fall in the US Treasury bond yields limited the USD up-move while a strong intraday bounce in Crude oil prices underpinned the commodity-linked currency – Loonie and collaborated towards capping gains.
On the economic data front, the release of better than expected Conference Board’s US Consumer Confidence Index did little to provide any meaningful impetus as market participant start repositioning for the next key event risk – the latest BoC monetary policy update, due to be announced on Wednesday.
Technical levels to watch