USD/CAD loses momentum near 1.3170 after rising on dismal Canada GDP data

• Canada's real economy contracted by 0.1% in October.
• Oil posts modest daily gains above $60 on Monday.
• US Dollar Index clings to small daily gains near 97.70.

The USD/CAD pair gained traction during the early trading hours of the American session as the disappointing growth data from Canada weighed on the CAD. After climbing to a daily high of 1.3175, however, the pair reversed its course and was last seen trading at 1.3157, adding 0.08% on a daily basis.

The data published by Statistics Canada on Monday revealed that the Canadian economy contracted by 0.1% on a monthly basis in October to come in worse than the market expectation for a stagnation. 

US Dollar Index pares early gains

On the other hand, the US Census Bureau announced that Durable Goods Orders in November declined by 2%. However, Durable Goods Orders Excluding Defense rose 0.8% to beat analysts' estimate of 0% to help the greenback remain resilient against its peers. The US Dollar Index, which rose to its highest level since December 6th at 97.82, is now flat on the day at 97.70 as the market activity turns subdued ahead of Christmas holiday.

In the meantime, despite the thin trading conditions, the barrel of West Texas Intermediate (WTI) is posting daily gains near $60.50 to make it difficult for the pair to stretch higher.

Technical levels to watch for