USD/CAD: Loonie better bid as Oil rebounds

The Canadian dollar stalled a three-day decline and remained better bid against its American counterpart in the Asian trades, keeping USD/CAD in a tight range below 1.31 handle.

USD/CAD deflates from 6-week tops

Currently, the USD/CAD pair trades -0.05% lower at 1.3087, consolidating its overnight retreat from multi-week highs reached at 1.3155 levels. The CAD bulls appear to fight back control as the oil prices rebound offers the much-needed support to the Loonie, after having slammed a day before. Both crude benchmarks now rally nearly 1% on renewed supply disruption concerns amid geo-political tension in Nigeria and Libya.

Markets now eagerly await the Canadian datasets due later in the NA session for fresh direction on the major, while in the meantime, oil-price action will continue to drive the moves in the Loonie. Inflation and retail trade reports from Canada are due on the cards later today.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3100 (round number) and 1.3154/58 (daily R1/ April 8 High). To the downside, immediate support might be located at 1.3032 (1h 50-SMA) and below that at 1.3001/00 (5-DMA/ round number).