USD/CAD consolidates below 1.2500 on higher US dollar, WTI retreats

• USD/CAD accumulates mild gains on Tuesday in the Asian session.
• Crude oil prices subsidize from the higher levels weigh on the loonie.
• The US Dollar Index remains stronger at 94.40 with fresh daily gains.

The USD/CAD pair remains muted on Tuesday. After testing the monthly low around 1.2450 in the previous two-session, the pair managed to move higher above 1.2490. At the time of writing, USD/CAD is trading at 1.2495, up 0.09% for the day.

The appreciative move in the US dollar pushes USD/CAD higher. The US Dollar Index (DXY), which measures the performance of the greenback against its six major rivals, trades near yearly highs at 94.40, up 0.05%.

Investors digested the disappointing NFP data on Friday and now brace for Fed tapering as soon as November amid rising inflation concerns. Crude oil prices soared to seven-year highs fueling the pricing pressure across the globe. 

On the other hand, the loonie pares some of its previous gains as WTI, a major Canadian export, retreats from its seven-year high above $82.00. The better-than-expected Canadian employment data supported the prospects of another cut in the Bank of Canada  (BOC) asset-buying scheme. The Canadian economy added 157K jobs in September.

As for now, traders are waiting for the US JOLTS Job Opening to take fresh trading impetus.

USD/CAD additional levels