USD/CAD hits fresh session tops, around mid-1.2300s

   •  Surging US bond yields help revive USD demand.
   •  Subdued oil prices did little to influence Loonie.
   •  Focus shifts to this week’s important US macro data.

The USD/CAD pair gained some positive traction at the start of a new trading week and is currently placed at session tops, around mid-1.2300s.

The pair has been attracting some fresh buying interest around the 1.2300-1.2290 region and a modest US Dollar rebound, backed by the ongoing upsurge in the US Treasury bond yields, seems to have prompted some short-covering move on Monday.

Meanwhile, a subdued action around crude oil prices did little to influence the commodity-linked currency - Loonie, with the US price dynamics acting as an exclusive driver of the pair's steady climb through the early European session.

Moving ahead, traders would now take cues from today's US economic data - Core PCE Price Index and personal income/spending data, due later during the early NA session. The key focus, however, would be on this week's important macro releases, including the keenly watched NFP data, and the highly anticipated FOMC announcement, which would help determine the pair's next leg of directional move.

Technical levels to watch

Immediate resistance is pegged near 1.2375 horizontal level, above which the pair is likely to move past the 1.2400 handle and head towards testing its next hurdle near the 1.2430 region.

On the flip side, retracement back below 1.2325 level might continue to find support near the 1.2300-1.2290 region, which if broken might turn the pair vulnerable to retest sub-1.2200 level.