The USD/CAD pair traded with a mild negative bias through the Asian session and was last seen hovering near the lower end of its daily range, just below the 1.2800 mark. The pair witnessed some selling during the early part of the trading action on Tuesday and eroded a part of the overnight modest recovery move from the lowest level since April 2018.
Despite a modest pickup in the US Treasury bond yields, expectations for more US fiscal stimulus measures held the US dollar bulls on the defensive and exerted some pressure on the USD/CAD pair. From a technical perspective, the pair's inability to register any meaningful recovery and the subsequent downtick suggests that the near-term bearish trend might still be far from being over. That said, oversold conditions on short-term charts warrant some caution for aggressive bearish trades.