USD/CAD climbs to fresh daily highs above 1.2070

• USD/CAD continues to edge higher ahead of American session.
• Crude oil prices turned south after reaching new multi-year highs.
• Eyes on high-tier macroeconomic data releases from the US.

The USD/CAD pair gained traction after closing in the red on Wednesday and climbed to a daily high of 1.2074 during the European trading hours. At the moment, the pair is rising 0.33% on a daily basis at 1.2071.

CAD loses interest as oil pares daily gains

Earlier in the day rising crude oil prices help the commodity-related loonie limit its losses. However, with the barrel of West Texas Intermediate, which touched its highest level since October 2018 at $69.73, reversing its direction, USD/CAD extended its daily rally. As of writing, WTI was posting small daily losses at $68.72.

On the other hand, the risk-averse market environment is helping the USD outperform its rivals ahead of key macroeconomic data releases. The US Dollar Index is currently up 0.18% at 90.07, helping USD/CAD preserve its bullish momentum.

The ADP Employment Change will be the first data release of the day from the US. The US Department of Labor's weekly Initial Jobless Claims data and the ISM Services PMI will be looked upon for fresh impetus as well.

There won't be any macroeconomic data releases from Canada and the USD's market valuation is likely to impact USD/CAD's movements in the second half of the day.

Technical levels to watch for