USD/CAD jumps to mid-1.2500s, back closer to one-week tops

The USD/CAD pair caught some fresh bids on Tuesday and jumped back to mid-1.2500s, back closer to one-week tops touched in the previous session.

Despite yesterday's late pull-back, led by BoC's Q3 Business Outlook Survey, the pair managed to hold its neck above the key 1.2500 psychological mark, supported by stronger US Dollar buying interest and weaker oil prices. 

Persistent greenback demand, accompanied with a follow through profit taking slide in crude oil prices was seen weighing on the commodity-linked currency - Loonie and helped the pair to regain some fresh traction on Tuesday. 

Today's US economic docket features the release of import/export prices, industrial production and capacity utilization data, which along with a scheduled speech by Philadelphia Fed President Patrick Harker would now be looked upon for some fresh impetus.

Technical levels to watch

Bulls would be eyeing for a sustained move beyond 1.2560-65 hurdle, above which the pair is likely to accelerate the up-move towards the 1.2600 handle before eventually darting towards 100-day SMA barrier near the 1.2700 region.

On the downside, any pull-back from higher levels now seems to find immediate support near the 1.25 handle, which if broken could drag the pair back towards mid-1.2400s ahead of 1.2415-10 strong support.