- An intraday turnaround in Crude Oil prices underpinned Loonie.
- The downside remains limited amid a pickup in the USD demand.
- Traders now look forward to US data for some short-term impetus.
The USD/CAD pair failed to capitalize on its early uptick and dropped to fresh session lows in the last hour, albeit remained well within a broader trading range held over the past one week or so.
Influenced by trade-related headlines
After Friday’s intraday pullback from the 1.3340-45 supply zone, the pair managed to regain some traction at the start of a new trading week and touched an intraday high level of 1.3319 on the back of weaker Crude Oil prices. However, the incoming positive trade-related headlines provided a goodish lift to Oil prices, which underpinned the commodity-linked currency – Loonie and exerted some pressure on the major.
It is worth reporting that China’s Vice Premier Liu He said earlier this Monday that China is willing to resolve trade issues with the US via claim negotiations. This was followed by US President Donald Trump’s remarks that China called the US negotiators last night and that they want to come back to the negotiating table.
Meanwhile, the downside remained limited, at least for the time being, amid a goodish pickup in the US Dollar demand and ahead of this week’s important US macro data – starting with the release of durable goods orders data later during the early North-American session.
This followed by a revised estimate of the second-quarter GDP growth figures on Thursday will be looked upon for more insights over the impact of intensifying US-China trade tensions, which might influence the near-term USD price dynamics and eventually help investors determine the pair’s next leg of a directional move.
Technical levels to watch