USD/CAD approaches 1.3000, session tops

• The pair leaps to session tops in the 1.2980/90 band.
• The stronger greenback plus declining oil prices help with the upside.
• US ISM Non-manufacturing coming up next on the US docket.

The better tone around the greenback is now lifting USD/CAD to test fresh daily highs in the proximity of the psychological barrier at 1.3000 the figure.

USD/CAD looks to data, oil

After two consecutive daily retracements, the pair is now posting moderate gains as the buying interest around the greenback seems to have returned to the markets.

In fact, tracked by the US Dollar Index (DXY), the buck is looking to extend the rebound further north of the 94.00 handle, although a tough barrier remains in the vicinity of the 94.20 area.

Further out, crude oil prices are extending the correction lower, this time the sour sentiment has been supported by news citing the US could have asked the OPEC to boost the cartel’s production by 1 mbpd.

Later in the NA session, US ISM Non-manufacturing will be in centre stage, seconded by JOLTs job Openings for the month of April and the IBD/TIPP Economic Optimism index.

In Canada, Labor Productivity figures for the January-March are also expected.

USD/CAD significant levels

As of writing the index is up 0.36% at 1.2982 and a breakout of 1.2999 (high May 8) would open the door to 1.3049 (high May 29) and finally 1.3126 (2018 high Mar.19). On the other hand, the immediate support lines up at 1.2898 (low Jun.4) followed by 1.2882 (21-day sma) and then 1.2816 (low May 31).