USD/CAD retreats back closer to 1.3100 mark
|- Bulls failed to capitalize on the overnight goodish up-move of around 75-pips.
- Sliding US bond yields weighed on the USD and seemed to exert some pressure.
- Weaker oil prices undermine Loonie and might help limit any meaningful slide.
The USD/CAD pair came under some fresh selling pressure on Tuesday and eroded a part of the previous session's solid bounce from closer to yearly lows.
A combination of supporting factors prompted some short-covering move and assisted the pair to recover back beyond the 1.3100 round figure mark on the first trading day of the week.
The US Dollar regained some traction in reaction to a trade truce between the US and China and got an additional boost following the release of better-than-expected US ISM manufacturing PMI.
This coupled with a sharp intraday pullback in Crude Oil prices undermined demand for the commodity-linked currency - Loonie and collaborated to the goodish intraday up-move of around 75-pips.
Oil prices remained on the defensive on Tuesday, though some renewed USD weakness - led by sliding US Treasury bond yields, exerted some fresh pressure through the early European session.
Despite the pullback, the pair has managed to hold its neck above the 1.3100 handle and in absence of any major market moving economic releases, remains at the mercy of the USD/Oil price dynamics.
However, this week's other macro data - including monthly jobs report from the US and Canada, should play an important role in influencing and determining the pair's next leg of a directional move.
Technical levels to watch
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