USD/CAD trades lower near 1.3580 as US Dollar retraces its recent gains

USD/CAD seems to retrace its recent gains from the previous session, hovering around 1.3580 during the Asian session on Thursday. The Canadian Dollar (CAD) experiences upward support due to the weaker US Dollar (USD), coupled with improved Crude oil prices.

The US Dollar Index (DXY) looks to resume its downward trajectory after the gains observed on Wednesday, trading lower around 102.80, by the press time. The USD/CAD pair received upward support from stronger-than-expected US Gross Domestic Product Annualized data released by the US Bureau of Economic Analysis. The US GDP Annualized increased by 5.2% during the third quarter, surpassing the previous reading of 4.9% and exceeding the market consensus of 5.0%.

Western Texas Intermediate (WTI) price continues the winning streak for the third successive day, trading higher near $77.90 per barrel at the time of writing. The Crude oil prices gain momentum ahead of the meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) on Thursday. The expectation is that Saudi Arabia and Russia will likely propose an extension of oil supply cuts in 2024.

The concerns about oil demand have resurfaced following China's economic data. The NBS Manufacturing PMI for November declined to 49.4 from the previous reading of 49.5. The Non-Manufacturing PMI contracted to 50.02, falling below the expected 51.1.

Canada’s Gross Domestic Product Annualized for the third quarter is scheduled to be released on Thursday, expected to increase by 0.2%. On the other side, the United States will release crucial economic data, including the Initial Jobless Claims for the week ending on November 24 and Personal Consumption Expenditure (PCE) Price Index data.