USD/CAD recovers early lost ground, Canadian macro data/US durable goods eyed

   •  Pickup in the US bond yields helps ease USD bearish pressure.
   •  A modest retracement in oil prices dents weighs on Loonie. 
   •  Canadian macro releases/US durable goods eyed for fresh impetus.

The USD/CAD pair recovered a major part of its early slide and has now jumped back to the top end of its daily trading range. 

The US Dollar selling, triggered by growing concerns about a full-blown US-China trade war, now seems to have abated a bit and assisted the pair to rebound from intraday lows, sub-1.2900 level. 

A goodish rebound in the US Treasury bond yields, despite a follow-through sell-off across European equity markets, helped ease USD bearish pressure and was seen as one of the key factors behind the pair's recovery of around 35-40 pips from session lows. 

Meanwhile, WTI crude oil pared some of its early strong gains, which was seen denting demand for the commodity-linked currency - Loonie and further collaborated to the pair's steady climb through the mid-European session.

Further gains, however, remained capped as investors refrained from placing aggressive bets ahead of important Canadian macro releases - the latest consumer inflation figures and monthly retail sales. This along with the release of durable goods orders data from the US should provide some fresh impetus on the last trading day of the week. 

Technical levels to watch

The 1.2940-50 region might continue to act as an immediate resistance, above which the pair seems all set to aim towards reclaiming the key 1.30 psychological mark. On the flip side, sustained weakness below the 1.2900 handle might now turn the pair vulnerable to extend the corrective slide further towards the 1.2810-1.2800 strong horizontal support.