USD/CAD consolidates in a range above 1.29 handle, BOC awaited
• CAD continues to be weighed down by NAFTA uncertainties.
• Weaker oil prices also fail to lend any support.
• Traders await BOC decision for a fresh directional impetus.
The USD/CAD pair extended its consolidative price-action through the early NA session and remained confined within a narrow trading range below mid-1.2900s.
After yesterday's sharp intraday retracement of over 130-pips from the key 1.30 psychological mark, the pair caught some fresh bids on Wednesday and was being supported by uncertainty over NAFTA negotiations.
Adding to this, a weaker tone around crude oil prices further dented sentiment surrounding the commodity-linked - Loonie and remained supportive of the pair's strong bid tone.
Meanwhile, a modest US Dollar rebound, despite reviving fears of a possible global trade war, failed to provide any fresh bullish impetus. Traders now seemed to wait for today's key event risk - BOC monetary policy decision, before positioning for the next leg of directional move.
In the meantime, the US ADP report on private sector employment might provide some short-term trading opportunities but seems unlikely to prove as a major game changer.
Technical levels to watch
The 1.2960-65 region might continue to act as an immediate resistance, above which the pair seems to make a fresh attempt towards conquering the 1.30 handle. On the flip side, any weakness below the 1.2900 handle is likely to find strong support near the 1.2870 level, which if broken would turn the pair vulnerable to slide further in the near-term.