USD/CAD slides farther below 1.29 handle ahead of ADP report

   •  Once again fails to sustain above 1.29 handle.
   •  Surging oil prices help offset dismal Canadian GDP. 
   •  Focus remains on ADP report, ISM PMI and FOCM decision. 

The USD/CAD pair once again failed to sustain its early strength above the 1.2900 handle and has now retreated around 30-35 pips from session tops. 

With investors now looking past yesterday's weaker-than-expected Canadian GDP figures, the prevalent bullish sentiment around crude oil prices was seen lending support to the commodity-linked currency - Loonie and has been one of the key factors weighing on the major. 

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The market even seems to have negated a modest US Dollar uptick, supported by a follow-through pickup in the US Treasury bond yields, with oil market dynamics acting as an exclusive driver of the pair's pull-back from 1.2915-10 strong supply zone. 

It, however, remains to be seen if the retracement is hinting towards a possible near-term top for the pair or is being utilized as a buying opportunity as investors brace for today's important US macro data and the key FOMC decision for fresh directional impetus. 

Today's economic docket features the release ADP report on private sector employment and the US ISM manufacturing PMI from the US, along with Canadian manufacturing PMI for October. 

Technical levels to watch

Immediate support is pegged near 1.2845 level, below which the corrective slide could get extended towards the 1.2815-10 region ahead of 1.2775 horizontal support. On the upside, the 1.2900 handle remains an immediate strong hurdle, which if conquered now seems to pave way for extension of the pair's near-term upward trajectory the very important 200-day SMA, currently near the key 1.3000 psychological mark.