USD/CAD: Refreshes daily high above 1.2680 as USD rebound, US data eyed

• USD/CAD tracks higher on Friday in the initial Asian trading hours.
• US Dollar Index inches higher above 93.00 with 0.26% gains.
• The Canadian dollar losses momentum as oil prices retreat.

After touching the high of 1.2685 in the US session, USD/CAD is consolidating gains in the early Asian trading hours on Friday. The pair confides in a very close trading band with less than 10-pips movement.

At the time of writing, USD/CAD is trading at 1.2683, up 0.02% for the day.

The US Dollar Index (DXY), which tracks the performance of the greenback against the six major currencies, trades above 93.00 little unchanged from the previous session with 0.26% gains.

The movement in the greenback is further augmented after St. Louis Fed President James Bullard said that the Fed should have completed its tapering process by the end of March 22. Dallas Fed President Robert Kaplan said the strength in the US economy prompts the central bank to begin reducing its monthly asset purchases in October.

The gains were capped on the mixed economic data, where US Initial Jobless Claims rose slightly to 353K and the US economy advanced an annualized 6.6% in Q2, below the market expectations of 6.7%.

On the other hand, the Canadian dollar managed to gain on steady crude oil prices.

As for now, traders wait for the slew of economic data: US Personal Income and Spending data, Goods Trade Balance, Personal Consumption Expenditure (PCE) Index and Fed Chair Jerome Powell speech to gauge the market sentiment.

 USD/CAD additional levels