USD/CAD returns to mid-1.34s as oil rebound weighs

• WTI recovers from multi-month low it set yesterday at $57.30.
• US Dollar Index stays in the negative territory below 98.
• Durable goods orders from the U.S. disappoint.

Despite the broad-based USD weakness on Thursday, the USD/CAD pair rose above the 1.35 mark as the commodity-related loonie came under a heavy selling pressure with the barrel of West Texas Intermediate losing more than 5% on the day. The modest rebound witnessed in crude oil prices today, however, caused the pair to pull away from its highs. As of writing, the pair was trading at 1.3456, losing 0.12% on a daily basis and the WTI was up nearly 1% at $58.70.

In addition to the oil recovery, the broad-based weakness surrounding the greenback on Friday allows the bearish pressure to remain intact. After making a sharp U-turn from the 2-year high that it set yesterday at 98.37, the US Dollar Index closed the day in the negative territory pressured by the sharp drop witnessed in the 10-year US Treasury bond yield. 

Today's data from the U.S. showed that durable goods orders in April declined by 2.1% following March's 2.8% growth and further weighed on the greenback. At the moment, the US Dollar Index is losing 0.15% at 97.70. There won't be any macroeconomic data releases in the remainder of the day and the pair is likely to continue to fluctuate in its daily range.

Technical levels to watch for