USD/CAD consolidating around 1.35 mark, awaits data for fresh impetus

The USD/CAD pair consolidated overnight strong gains to one-week highs and was seen oscillating within a broader trading band around the key 1.35 psychological mark.

The Canadian Q1 GDP print, released on Wednesday, missed expectations and came-in to show an annualized growth of 3.7% (3.9% expected. This coupled with a slump in oil prices, with WTI crude oil dipping below $48.00 mark to nearly three-week lows, weighed heavily on the commodity-linked currency - Loonie, and lifted the pair beyond 1.35 mark. 

However, a late rebound in oil prices, led by a drawdown in the US stockpiles, and reemergence of US Dollar selling interest, kept a lid on the pair's up-move. 

A follow through recovery in oil prices continued lending support to the Canadian Dollar. Meanwhile, a sharp up-move in the US treasury bond yields underpinned the greenback demand and led to a subdued, range bound price action through Asian session on Thursday.

Today's US economic docket features the release of ADP report on private sector employment, weekly jobless claims and ISM manufacturing PMI, and from Canada, manufacturing PMI is due for release during early NA session.

Technical levels to watch

Bulls would be eyeing for a sustained move above 1.3520 level, above which the pair seems more likely to surpass 1.3535 horizontal resistance and head towards testing 1.3565-70 hurdle ahead of the 1.3600 handle. On the flip side, 1.3480 level now seems to act as immediate support, which if broken could accelerate the slide back towards mid-1.3400s en-route an important support near the 1.3400 round figure mark.