Upbeat Canadian housing market data further collaborated to the intraday selling bias.
The USD/CAD pair failed to capitalize on its early uptick and dropped to fresh session lows, around the 1.3160 region during the early North-American session.
After an initial uptick to the 50-day SMA support breakpoint, now turned resistance, the pair met with some fresh supply and seemed rather unimpressed by a modest pickup in the US Dollar demand. Against the backdrop of growing optimism over the resumption of the US-China trade talks, a strong follow-through upsurge in the US Treasury bond yields continued lending support to the greenback.
However, the ongoing bullish run in Crude Oil prices underpinned demand for the commodity-linked currency - Loonie and turned out to be one of the key factors exerting some pressure on the major. In fact, Oil prices rallied further beyond the $58.00/barrel mark to the highest levels in six weeks on the back of hopes that OPEC and its allies may agree to extend an agreement to curb output.
The Canadian Dollar got an additional boost following the release of stronger-than-expected domestic housing market data, showing that building permits rose sharply by 3.0% in July as compared to the previous month's upwardly revised reading of -3.1% (-3.7% reported previously).
It will now be interesting to see if the pair is able to find any support at lower levels or the latest leg of a downfall reaffirms a near-term bearish breakdown, setting the stage for an extension of the recent pullback from the vicinity of the 1.3400 handle touched earlier this month.