USD/CAD looks to make a fresh attempt towards conquering 1.35 handle

The USD/CAD pair managed to recover early lost ground and is now trading with minor gains, eyeing to move back above the key 1.35 psychological mark.

A fresh leg of downslide in oil prices, with WTI crude oil tumbling to session lows below $47.50 level, was seen weighing on the commodity-linked currency - Loonie, and helped the pair's recovery move from session lows near 1.3460 region. 

On the economic data front, an upward revision of the US nonfarm productivity provided an additional boost to the US Dollar's recovery move from the lowest level since the US Presidential election in Nov. 2016, albeit gains were limited by a sharp downward revision of unit labor costs.

With markets already pricing-in an eventual Fed rate-hike action on June 14, it remains to be seen if the pair is able to build on the recovery move amid fading expectations for tighter rate-tightening cycle through 2017, especially after Friday's weaker-than-expected headline NFP print. 

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Today's US economic docket also features the key release of ISM nonmanufacturing PMI and factory orders, which if beats expectations should help the pair to make a fresh attempt to build on to its move back above the 1.35 handle.

Technical levels to watch

A follow through buying interest beyond the 1.35 mark, leading to a subsequent strength above 1.3515 resistance, should lift the pair back towards mid-1.3500s before aiming towards the 1.3600 handle. On the downside, weakness below 1.3460-50 area is likely to accelerate the slide back towards the 1.3400 handle en-route 1.3370 support.