USD/CAD stays in the upper half of its daily range above 1.3050

After closing the previous day a few pips above the 1.30 mark, the USD/CAD pair erased the majority of this week's losses on Thursday as the loonie failed to preserve its strength amid falling crude oil prices. At the moment, the pair is trading at 1.3060, adding 0.5% on the day.

Despite the disappointing macroeconomic data releases from the United States, the greenback was able to hold on to its recovery gains in the NA session and was last seen moving sideways near 95.50, where it was up 0.43% on the day. The PMI data released by Markit today showed that activity in both the manufacturing and service sectors expanded at a slower pace than expected. Furthermore, new home sales declined by 1.7% and the Kansas Fed's Manufacturing Index fell to 10 in August from 22 in July.

A technical correction seems to be the primary fuel of the USD's upsurge today. Meanwhile, markets are expecting Fed officials to reiterate the central bank's independence at the Jackson Hole Symposium. Earlier today, speaking to news outlets at the sidelines at the symposium, Kansas Fed President George said that President Trump's comments wouldn't impact her decision to vote for two more rate hikes before the end of the year.

On a positive note for the loonie, Canada's Minister of Foreign Affairs Chrystia Freeland said that she was encouraged by the optimism of NAFTA partners and the progress the U.S. and Mexico were showing was an essential step toward agreeing on a new deal. 

In the meantime, following yesterday's strong rally, crude oil reversed its course and the barrel of West Texas Intermediate was last trading at $67.60, losing 50 cents on the day. 

Technical outlook

The initial support for the pair aligns at 1.3000 (psychological level) ahead of 1.2960 (Aug. 7 low) and 1.2920 (Jun. 8 low). On the upside, resistances are located at 1.3080 (daily high), 1.3110 (50-DMA) and 1.3175 (Aug. 16 high).