USD/CAD trims losses, around 1.3040

The Canadian dollar is now giving away part of its earlier gains vs. its American neighbor, with USD/CAD re-testing the 1.3040 area.

USD/CAD focus on oil, data

After briefly testing the 1.3020/15 band during overnight trade, spot gathered some traction and managed to claw back some ground lost, against the backdrop of rising demand for the greenback and the barrel of West Texas Intermediate retaking the $49.00 mark and above.

Later in the session, crude oil dynamics and Canadian GDP figures will drive the sentiment around CAD, while inflation tracked by the PCE and Personal Spending/Income will be the main releases in the US calendar.

USD/CAD significant levels

As of writing the pair is down 0.02% at 1.3045 facing the next support at 1.2928 (55-day sma) seconded by 1.2912 (high May 26) and then 1.2768 (low May 12). On the upside, a break above 1.3095 (high May 30) would expose 1.3191 (high May 24) and finally 1.3312 (38.2% Fibo of 1.4692-1.2458).