USD/CAD struggling for direction, awaits economic data for fresh impetus

The USD/CAD pair struggled for a firm direction and extended its consolidative price action around the 50-day SMA region, for the second consecutive day.

The pair seesawed between tepid gains/minor losses and remained stuck within 30-pips narrow trading range below the key 1.25 psychological mark through early NA session on Thursday.

A modest pickup in the US Dollar demand, supported by growing prospects for additional Fed rate hike action in 2017 and despite a mildly softer tone around the US Treasury bond yields, helped limit any immediate downside. 

However, recovering crude oil prices, which tends to underpin demand for the commodity-linked currency - Loonie, was seen capping the pair's up-move and has led to a subdued, range-bound price action.

Traders would now take cues from today's economic docket, featuring the release of Canadian trade balance data along with weekly jobless claims, trade balance and factory orders data from the US. 

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In addition, speeches by various FOMC members, namely - the Fed Governor Jerome Powell, San Francisco Fed President John Williams, Philadelphia Fed President Patrick Harker and Kansas City Fed President Esther George, might also help traders to grab some short-term opportunities. 

Technical levels to watch

Immediate support is pegged near the 1.2460-55 region, below which the pair is likely to accelerate the slide towards 1.2425 intermediate support ahead of the 1.2400 handle.

Conversely, sustained move beyond the 1.25 handle might lift the pair back towards weekly tops resistance near the 1.2535-40 region en-route 1.2570 level.