USD/CAD clings to daily gains, trades near 1.4250 ahead of US data

• Canadian economy expanded by 0.1% in January as expected.
• US Dollar Index loses traction before reaching 100 handle. 
• Coming up from US: Conference Board's Consumer Confidence Index. 

The USD/CAD pair advanced to a fresh daily high of 1.4268 in the last hour but inched lower following the growth data from Canada. As of writing, the pair was up 0.55% on the day at 1.4247.

Mixed data from Canada fails to help CAD

The data published by Statistics Canada on Tuesday revealed that the Canadian economy expanded by 0.1% on a monthly basis in January to match the market consensus. However, "the pandemic will significantly affect economic activity in March and subsequent months," the press release noted.

Other data from Canada showed that the Raw Material Price Index and the Industrial Product Price Index in February declined by 4.5% and 0.5% with both data coming in lower than analysts' estimates.

Meanwhile, recovering crude oil prices seems to be helping the commodity-related loonie stay resilient against the greenback. After closing the first day of the week more than 7% lower at $20.25, the WTI staged a technical rebound and was last seen trading at $21, adding 3.6% on a daily basis.

Later in the session, the Conference Board will publish its highly-anticipated US Consumer Confidence data. The US Dollar Index, which touched a daily high of 99.95, is consolidating its gains around 99.60 ahead of this data.

Technical levels to watch for