USD/CAD flirting with lows, around 1.2300 mark ahead of key macro releases

   •  Renewed USD weakness prompts fresh selling ahead of 1.24 handle.
   •  A goodish pickup in the US bond yields fails to revive USD demand.
   •  Focus remains on today’s important US/Canadian macro data.

The USD/CAD pair maintained it’s offered tone through the European trading session but has managed to hold its neck just above the 1.2300 handle.

A fresh wave of US Dollar selling bias, despite greenback supportive comments by the US President Donald Trump, kept the pair's overnight recovery move from 4-month lows. Even a goodish pickup in the US Treasury bond yields failed to provide any respite and stall the pair's steady decline from the 1.2400 neighborhood. 

Meanwhile, a subdued action around crude oil prices, which tends to influence demand for the commodity-linked currency - Loonie, did little to provide any fresh impetus, with the USD price dynamics acting as an exclusive driver of the bearish slide on the last trading day of the week. 

Currently hovering around the 1.2315-20 region, investors now look forward to important macro releases from the US and Canada for some fresh directional impetus. Today's economic docket features the release of advance US Q4 GDP growth numbers and durable goods orders, which along with the latest consumer inflation figures from Canada will play important role in determining the pair's near-term trajectory.

Technical levels to watch

A decisive break below 1.2300 mark, leading to a subsequent weakness below 1.2280 level, would turn the pair vulnerable to accelerate the slide towards the 1.2250-40 region en-route the 1.2200 handle.

On the upside, any meaningful recovery is likely to confront fresh supply near mid-1.2300s, above which a bout of short-covering could lift the pair back towards the 1.2400 handle ahead of 1.2440 supply zone.