USD/CAD extends consolidative price action around mid-1.2900s

   •  Global trade-ward fears prompt some fresh USD selling.
   •  Subdued oil prices fail to influence the commodity-linked Loonie.
   •  Today’s economic docket eyed for some meaningful impetus.

The USD/CAD pair extended its consolidative price action and remained confined within a narrow trading range around mid-1.2900s.

Renewed worries over a possible global trade war kept the US Dollar bulls on defensive and failed to assist the pair to build on this week's strong upsurge from the 1.2800 neighborhood. 

This coupled with a sideways movement in crude oil prices, which tends to influence demand for the commodity-linked currency - Loonie, also did little to provide any meaningful impetus and further contributed to a subdued/range-bound price action for the second consecutive session. 

Meanwhile, the Canadian Prime Minister Justin Trudeau's optimistic comments on NAFTA, saying that an agreement can be reached, failed to inspire CAD bulls and seemed to have been largely negated by the recent dovish remarks by BoC Governor Stephen Poloz on Tuesday. 

Today's economic docket, featuring the release of regional manufacturing indices and the usual weekly initial jobless claims from the US, along with the Canadian ADP non-farm employment report, would be looked upon for some meaningful momentum that could assist the pair to break through the trading range. 

Technical levels to watch

Any up-move beyond 1.2965 level might continue to confront some fresh supply near the key 1.30 psychological mark, above which the pair seems all set to aim towards testing 1.3050 intermediate resistance en-route the 1.3100 handle.

On the flip side, the 1.2920-1.2900 region is likely to protect the immediate downside, which if broken could accelerate the fall towards 1.2870 level before the pair eventually heads back towards retesting the 1.2800 handle.