USD/CAD clings to modest daily gains, comfortably above 1.3000 handle

   •  Renewed USD buying interest helps catch some bids near 1.30 psychological mark.
   •  Mixed US/Canadian economic data does little to provide any fresh bullish impetus.
   •  Subdued crude oil prices undermine Loonie and remain supportive of the positive tone.

The USD/CAD pair trimmed some of its early gains to an intraday high level of 1.3048, albeit has managed to hold with modest gains post-US/Canadian data. 

The pair stalled overnight sharp retracement slide from over two-week tops, levels beyond the 1.3100 handle, and found decent support near the key 1.30 psychological mark. A goodish pickup in the US Dollar demand since the early European session was one of the key factors behind the pair's early leg of the recovery move. 

The uptick, however, lacked any strong conviction and remained capped below mid-1.3000s following the release of mixed US/Canadian economic data. The latest US PPI figures missed consensus estimates but the disappointment was largely offset by better-than-expected initial weekly jobless claims. This coupled with a slightly weaker than expected Canadian housing market data helped the pair to hold with modest daily gains, just below session tops touched in the last hour.

Meanwhile, a subdued crude oil price action did little to influence the commodity-linked currency - Loonie, with the USD price dynamics turning out to be an exclusive driver of the pair's momentum through the early North-American session on Thursday. 

It would now be interesting to see if the pair is able to attract any follow-through buying interest or the inability to gain follow-through positive traction points to further downside in the near-term. Hence, it would be prudent to wait for a decisive move in either direction before positioning for the pair's near-term trajectory.

Technical levels to watch

On a sustained move back above mid-1.3000s, the pair is likely to aim towards reclaiming the 1.3100 handle before eventually darting towards its next hurdle near the 1.3130-40 region. On the flip side, weakness below the 1.30 mark might continue to find support near 100-day SMA, around the 1.2965-60 region, which if broken would pave the way for further depreciating move in the near-term.