USD/CAD consolidates daily gains below 1.2600 ahead of US data
- USD/CAD is posting modest daily gains ahead of American session.
- US Dollar Index stays quiet following Monday's decline.
- WTI trades in a tight range around $72 for second straight day.
After closing the first day of the week in the negative territory, the USD/CAD pair edged higher during the European trading hours on Tuesday and reached a daily high of 1.2593. With the market action turning subdued ahead of the American session, USD/CAD is consolidating its gains and was last seen rising 0.3% on the day at 1.2575.
DXY rebounds following Monday's drop
On Monday, the US Dollar Index (DXY) lost 0.3% pressured by declining US Treasury bond yields. The cautious market mood, as reflected by modest losses witnessed in major European equity indexes, is helping the greenback find demand and the DXY currently holds in the positive territory around 92.70.
Meanwhile, the barrel of West Texas Intermediate is moving sideways around $72 for the second straight day on Tuesday, allowing the USD's market valuation to remain the primary driver of USD/CAD's movements.
Later in the session, the US Census Bureau will release Durable Goods Orders data for June. Investors expect to see an increase of 2.1% on a monthly basis. Nevertheless, the market reaction is likely to be muted with investors staying focused on the FOMC's policy announcements on Wednesday.
On the other hand, there won't be any high-tier macroeconomic data releases featured in the Canadian economic docket.
Technical levels to watch for