Canadian Dollar Consolidates Below 1.4050 as Oil Rebounds

USD/CAD failed to build on Monday’s modest recovery and instead settled into a narrow range during the Asian session. Spot prices held steadily below the 1.4050 mark, showing little directional conviction.

Rising crude oil prices lent support to the commodity-linked Canadian dollar, capping any further upside in the pair. The rebound in oil provided a counterweight to the U.S. dollar’s underlying strength.

With fundamental drivers mixed, traders kept the pair in a tight consolidation band. The near-term outlook remains dependent on whether oil’s move can sustain momentum against broader USD sentiment.