USD/CAD aiming to conquer 200-DMA, US data in focus

The USD/CAD reversed early dip to 1.3172 and has now turned positive, attempting to build on Tuesday's bullish momentum. 

Currently hovering around 1.3200 handle, the pair caught fresh bids at lower levels and inched closer to the very important 200-day SMA near 1.3215-20 band. The pair extended overnight gains, amid renewed Fed rate-hike speculations, despite of upbeat sentiment surrounding crude oil prices that tends to benefit the commodity-linked currency - Lonnie. 

Later during the day, traders will focus on US economic releases that include - ADP report on private sector employment, trade balance data, ISM non-manufacturing PMI and factory orders, in order to grab short-term trading opportunities ahead of the keenly watched NFP release on Friday. 

Meanwhile, the official EIA report on weekly US crude stockpiles would drive crude oil prices, later during NY trading session, will also be watched for fresh impetus in crude oil prices, which remains a key driver of the Canadian Dollar. 

Technical levels to watch

On a sustained move above 200-day SMA immediate hurdle near 1.3215-20 region, the pair should immediately aim towards 1.3280 (Sept. 27 high) en-route 1.3300 round figure mark. Meanwhile on the downside, weakness below session low support near 1.3170 is likely to find support near 1.3150-45 horizontal area below which the pair is likely to break below 1.3100 handle and head towards testing 50-day SMA support near 1.3050  region with 1.3080 acting as intermediate support.