USD/CAD weakens farther below 1.31 mark, drops to near one-month low

   •  USD selling bias remains unabated at the start of a new trading week.
   •  Bullish oil prices underpin Loonie and exert additional downward pressure.

The USD/CAD pair remained under some selling pressure at the start of a new trading week and is currently placed at near one-month lows.

The pair extended its retracement slide from near one-year tops and has now fallen around 300-pips from the 1.3400 neighborhood set on June 27. A combination of factors, ranging from persistent US Dollar selling bias and positive oil prices, collaborated to the pair's steady decline through the Asian session on Monday.

Despite Friday's better-than-expected headline NFP print, the greenback struggled near 3-1/2 week lows and was being weighed down by softer average hourly earnings growth data that witnessed a modest rise of 0.2% m/m in June. 

Meanwhile, crude oil remained supported by last week's data that the US crude inventories fell to their lowest in three years and continued underpinned demand for the commodity-linked currency - Loonie, eventually exerting some additional downward pressure on the major. 

In absence of any major market moving economic releases, the USD/oil price dynamics might continue to act as key determinants of the pair's momentum ahead of the latest BoC monetary policy update on Wednesday.

Technical levels to watch

A follow-through selling below the 1.3065-60 immediate support has the potential to continue dragging the pair further towards its next major support near the key 1.30 psychological mark, coinciding with 50-day SMA.

On the flip side, any meaningful up-move beyond the 1.3100 handle now seems to confront fresh supply near the 1.3140-45 region, above which the pair is likely to aim towards reclaiming the 1.3200 round figure mark.