USD/CAD holds steady above 1.3100 handle, lacks any firm intraday direction

• USD/CAD recovers farter from 1-1/2 month lows set on Wednesday.
• The USD finds support from a modest uptick in the US bond yields.
• Softer US/Canadian second-tier data failed to impress bullish traders.

The USD/CAD pair edged higher and refreshed session tops, around the 1.3125 region in the last hour, albeit lacked any strong follow-through.

Following a brief consolidation, a combination of factors helped the pair to gain some positive traction during the early North-American trading session and recover a part of the overnight downfall to fresh multi-week lows.

The US dollar picked up some pace amid a sudden intraday upsurge in the US Treasury bond yields and seemed rather unaffected by a slight disappointment from the second-tier US economic data released this Thursday.

From Canada, Wholesale Sales data and ADP report on private-sector employment details also fell short of market expectations. This coupled with mildly weaker tone surrounding oil prices undermine demand for the commodity-linked currency – loonie and remained supportive.

Despite the supporting factors, the pair lacked any strong bullish conviction, indicating that the near-term bearish pressure might still be far from being over. Some follow-through weakness below the 1.3100 handle will reaffirm the negative outlook and pave the way for further depreciating move.

Technical levels to watch