USD/CAD considering its options beneath the 1.29 handle, US GDP looming for Friday

• The Loonie is fighting back against the USD, but momentum has yet to materialize.
• Little data remains on the calendar for the pair until US GDP figures slam into markets on Friday.

The USD/CAD has had a quiet Asia session, trading into 1.2835.

The pair managed to reverse its USD-bullish direction in Wednesday's trading and knock back away from the 1.2900 level which the USD/CAD has made a beeline for since bottoming near 1.2525.

BOC's Poloz: cautiously positive on Canadian economy

The CAD developed some bullish momentum, but wasn't able to continue the push into Thursday after the Bank of Canada's Governor Poloz testified in the Candian Parliament, where he gave the BoC's take on the Candian economy. Poloz didn't cover any new material and, while he remains upbeat about the economy, he did highlight several key weak points that the CAD will struggle to overcome, namely low oil prices suppressing both the CAD and economic growth, as well as uncertainty surrounding the current NAFTA renegotiations.

Thursday is a quiet showing for the pair, but Friday will be bringing US preliminary GDP figures at 12:30 GMT, and annualized QoQ GDP is expected at 2.3%, a decline from the previous reading of 2.9%.

USD/CAD levels to watch

As pointed out by the RoboForex Team, "the [USD/CAD] is moving above Ichimoku Cloud, which means that it may continue growing. The markets could indicate that the price may test the upside border of the cloud at 1.2820 and then continue moving upwards to reach 1.2970. Another signal to confirm further ascending movement is the price’s rebounding from the rising channel’s downside border. However, the scenario that implies further decline may be canceled if the price breaks the downside border of the cloud and fixes below 1.2720. In this case, the pair may continue falling towards 1.2640.”