USD/CAD inter-markets: seems vulnerable to retest 1.30 mark if oil gains further traction

Having faced rejection just below 1.3200 handle on Friday, the USD/CAD pair resumed with its near-term corrective move and dropped to retest the very important 200-day SMA support.

Currently hovering around 1.3085 region, the pair's latest leg of slide from the vicinity of 1.3200 handle was led by a surprisingly stronger-than-expected monthly Canadian GDP print. Adding to this, a recovery in the US and Canadian 10-year Treasury bond yields was supportive of the prevalent risk-on trade and dented the safe-haven demand of the US Dollar. 

Moreover, upbeat sentiment surrounding crude oil prices extended further support to the commodity-linked currency - loonie, and is exerting additional selling pressure around the major. However, a minor pull-back in the related intrinsic has helped the pair to hold on to the very important 200-day SMA support. 

Today's release of US ISM manufacturing PMI and RBC Manufacturing PMI from Canada would provide fresh impetus for the pair ahead of this week's key event risk, the release of monthly jobs report from both the US (NFP) and Canada. 

In the meantime, any further up-move in crude oil prices, and supported by other intrinsic, could now force the pair to break through its immediate important support and head towards testing its next major support near 1.3000 psychological mark, also coinciding with 100-day SMA.