USD/CAD slides back closer to session lows

   •  A sharp pull-back in the US bond yields prompts some selling around the USD.
   •  Weaker oil prices undermine Loonie and might help limit any meaningful downside.

The USD/CAD pair erased all of its early gains to levels just above the 1.3400 handle and is currently placed at the lower end of its daily trading range. 

With investors still assessing the recent inversion of 3-month and 10-year US government bond yields, a sudden fall in the US Treasury bond yields failed to assist the US Dollar to build on the intraday positive momentum and exerted some fresh downward pressure on the major.

However, a weaker tone around crude oil prices - weighed down by indications of an impending recession in the world's top economy, undermined demand for the commodity-linked currency - Loonie and might turn out to be the only factor that might help limit deeper losses. 

It would now be interesting to see if the pair is able to find any buying interest at lower levels or the current pull-back of around 25-pips from daily tops marks the resumption of this week's corrective slide from two-week tops, set on Monday, amid absent relevant market moving economic releases.

Technical levels to watch

Any subsequent slide below 1.3370 level could get extended towards intermediate support near the 1.3340 region before the pair eventually drops to challenge the 1.3300 round figure mark. On the flip side, the 1.3400-05 region might continue to act as an immediate resistance, above which the pair is likely to aim back towards testing the 1.3440-45 supply zone.