The USD/CAD rallied a bit on Tuesday morning in Asia as we continue to see some minor pullback in crude oil prices. The Canadian dollar is highly correlated to WTI crude prices. The price action suggests a decent gain ahead after USD/CAD took support at the 1.276 level. Investors are expecting an interest rate hike from the Bank of Canada after the core Canadian Consumer Price Inflation figures exceeded the market expectations. If bulls can take the next immediate resistance level at the 1.280 mark, then the price will approach the 1.28500 level. The hawkish remarks of Fed Chair Jerome Powell will continue to support the USD/CAD in the near term.
