USD/CAD retreats to 1.2530 area as crude oil prices rebound

• USD/CAD is edging lower in the early American session.
• WTI trades in the positive territory above $69.
• US Dollar Index clings to modest daily gains near 92.20.

The USD/CAD pair edged higher at the start of the week and reached a daily top of 1.2559. However, the pair struggled to preserve its bullish momentum in the second half of the day and was last seen trading at 1.2532, where it was virtually unchanged on a daily basis. 

WTI rebounds above $69

Earlier in the day, the modest rebound witnessed in the US Dollar Index (DXY) helped USD/CAD turn south. Following Friday's sharp decline on the disappointing August jobs report, which revealed Nonfarm Payrolls rose by 235,000 compared to the market expectation of 750,000, the DXY is posting small daily losses near 92.20 on Monday.

Nevertheless, recovering crude oil prices helped the commodity-related CAD find demand and forced USD/CAD to reverse its direction. 

Earlier in the day, the barrel of West Texas Intermediate (WTI) dropped to a daily low of $68.23 but didn't have a difficult time erasing its losses. Currently, the WTI is trading in the positive territory at $69.35.

The US and Canada markets will be closed due to the Labor Day holiday and USD/CAD is likely to continue to move sideways in the remainder of the day. On Wednesday, the Bank of Canada will announce its Interest Rate Decision and Release the Rate Statement.

Technical levels to watch for