USD/CAD hits six-month high above 1.2800 on steady USD

• USD/CAD notches higher following the previous session’s gain in the Asian trading hours.
• US Dollar Index stands tall above 93.50 on sonnet-than-expected taper talk.
• The Canadian dollar is under selling pressure on sour risk sentiment.

After testing the six-month high above 1.2800 in the overnight session, the USD/CAD pair continues to remain strong.

At the time of writing, USD/CAD is trading at 1.2828, up 0.02% for the day.

The US Dollar Index (DXY), which tracks the performance of the greenback against the six major currencies, stays strong above 93.50 in the wake of Fed taper’s talk.

The US Initial Jobless Claims dropped for a fourth trading session at 348K, below the market expectations of 363K.

On the other hand, the Canadian dollar was weighed down by risk-off sentiment amid rising coronavirus cases.

Oil prices continued to decline for the sixth consecutive session amid demand concerns and a stronger dollar.

Meanwhile, as per the ADP Canada National Employment Report, the Canadian economy added  221,300 jobs in July.

As for now, traders are waiting for the Canadian Retail Sales data and New Housing Price Index to trade fresh trading impetus.

USD/CAD additional levels