USD/CAD struggles to stage a convincing rebound, trades around 1.2400
|- USD/CAD trades in a very tight range on Tuesday.
- Pair stays within a touching distance of multi-year lows following Monday's drop.
- WTI posts modest daily gains, holds above $62 ahead of API data.
The USD/CAD pair lost nearly 100 pips on Monday and closed below 1.2400 for the first time in more than three years. Although the pair managed to stage a technical correction on Tuesday, it seems to be having a difficult time gathering bullish momentum. As of writing, USD/CAD was posting small daily gains at 1.2403.
Rising oil prices support CAD on Tuesday
On Monday, the selling pressure surrounding the greenback forced USD/CAD to remain on the back foot. Ahead of the Conference Board's Consumer Confidence data, the US Dollar Index stays in the positive territory around 90.90.
Nevertheless, rising crude oil prices continue to support the commodity-sensitive loonie and don't allow USD/CAD to extend its rebound. Currently, the barrel of West Texas Intermediate is up 0.8% on a daily basis at $64.45. The American Petroleum (API) Institue's Weekly Crude Oil Stock data will be looked upon for fresh impetus at 2030 GMT.
In the meantime, Bank of Canada (BoC) Governor Tiff Macklem will be delivering a speech in the late American session. Last week, the BoC became the first major central bank to taper its asset purchases and to deliver the planned timing of the first rate hike, triggering a rally in the CAD:
Technical levels to watch for
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