USD/CAD steadies around mid-1.2300s ahead of key US data

• USD/CAD is edging lower for the fourth straight day on Friday.
• WTI trades at fresh multi-year highs above $82.
• Eyes on US Retail Sales and consumer sentiment data.

After closing the previous three trading days in the negative territory, the USD/CAD pair extended its slide on Friday and touched its lowest level since early July at 1.2336 before going into a consolidation phase. As of writing, the pair was down 0.15% on the day at 1.2349.

Eyes on US data

Rising crude oil prices continue to provide a boost to the commodity-related loonie ahead of the weekend. The barrel of West Texas Intermediate (WTI) is currently trading at its highest level in nearly four years at $82, rising 0.7% on a daily basis.

On the other hand, the risk-positive market environment makes it difficult for the greenback to gather strength on Friday despite a 2% rebound witnessed in the benchmark 10-year US Treasury bond yields. Currently, the US Dollar Index is posting small losses around 93.90, not allowing USD/CAD to gain traction. 

Meanwhile, Wall Street's main indexes remain on track to open higher following Thursday's upsurge with the US stock index futures rising between 0.25% and 0.42%.

Later in the session, the US Census Bureau will release the September Retail Sales data. The University of Michigan's preliminary Consumer Sentiment Index for October will be featured in the US economic docket as well.

US Michigan Consumer Sentiment September Preview: Happy consumer, happy economy?

Technical levels to watch for