USD/CAD steadies above 1.3850 as Canadian Dollar weakens on lower Oil prices

USD/CAD is trading around 1.3870 during Asian hours, steady above 1.3850 following modest losses in the previous session. The weakening of the Canadian dollar is mainly attributed to lower oil prices. The market's focus is on oil prices and related Canadian economic indicators, suggesting a response of the dollar amidst these movements. Given that the Canadian dollar is a commodity currency, it is significantly influenced by commodity prices such as oil. In this context, the weakness of the Canadian dollar has naturally led to a rebound in USD/CAD. Technically speaking, 1.3850 is being recognized as a support level, with the potential to rise towards the resistance at 1.3900, though clear trading signals are not provided. The market seems to maintain a wait-and-see stance, and attention should be paid to further movements in oil prices and their impact on the Canadian economy.