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  • USD/CAD edged lower for the fourth consecutive session on Tuesday.
  • The USD failed to gain any traction despite a pickup in the US bond yields.
  • Weaker oil prices undermined the loonie and extended some support.

The greenback remained on the defensive against its Canadian counterpart, with the USD/CAD pair struggling below the 1.3900 mark, or near one-month lows.

The US dollar failed to gain any meaningful traction despite a goodish pickup in the US Treasury bond yields, which was eventually seen as one of the key factors exerting some pressure for the fourth consecutive session on Tuesday.

The downtick also marked the sixth day of a negative move in the previous seven and seemed rather unaffected by a weaker tone surrounding crude oil prices, which tend to undermine demand for the commodity-linked – the loonie.

The latest optimism over a 9.7 million-barrel cut in daily oil production by OPEC+ turned out to be short-lived amid concerns over an unprecedented demand loss from the global COVID-19 disaster and led to some renewed weakness in oil prices.

Bulls, however, seemed rather unimpressed, instead preferred to wait on the sidelines and assess the negative impact of the coronavirus pandemic on the global economy, which will continue to play a key role in influencing the market sentiment.

There isn’t any major market-moving economic data due for releases on Tuesday. Hence, the USD/oil price dynamics will be looked upon for a fresh impetus and grab some meaningful trading opportunities.

Technical levels to watch