USD/CAD sticks to modest daily gains, above 1.3600 handle ahead of US data
• The USD fails to preserve early gains and prompts some selling at higher levels.
• Rebounding oil prices underpinned Loonie and collaborated towards capping gains.
• Traders now eye US ADP report/ISM manufacturing PMI for some fresh impetus.
The USD/CAD pair trimmed a part of its early strong gains but has still managed to hold its neck comfortably above the 1.3600 handle.
After yesterday's late pull-back, the pair caught some fresh bids on Thursday and moved back within striking distance of to 19-month tops set earlier this week, albeit remained capped below the 1.3660 supply zone.
With European equity market showing some initial signs of stability, a modest US Dollar retracement was seen as one of the key factors keeping a lid on any strong follow-through for the major.
This coupled with a goodish rebound in crude oil prices, now trading with modest daily gains, extended some additional support to the commodity-linked currency - Loonie and further collaborated towards capping gains.
Moving ahead, market participants now look forward to the US economic docket, featuring the release of ADP report on private sector employment and ISM manufacturing PMI, for some fresh impetus.
Technical levels to watch
The 1.3660 region remains a strong short-term hurdle, above which the pair is likely to accelerate the up-move towards reclaiming the 1.3700 handle. On the flip side, weakness below the 1.3600 handle might continue to find some support near the 1.3570-65 region, which if broken might turn the pair vulnerable to head back towards challenging the key 1.3500 psychological mark.