• USD/CAD hovers around 1.3480 ahead of economic data from both nations.
• Improved WTI crude prices contribute to underpin the Canadian Dollar (CAD).
• Upbeat US Treasury yields could provide support for the US Dollar (USD).

USD/CAD attempts to snap a two-day winning streak, hovering around 1.3480 during the early trading hours of the Asian session on Friday. The Canadian Dollar (CAD) experienced support as the US Dollar (USD) witnessed correction, coupled with the gains in Crude prices.

West Texas Intermediate (WTI) crude oil is trading around $89.50 per barrel by the press time, as it seeks to build on its recent gains. This uptrend is being driven by the intentional production cutbacks by OPEC+ producers, who are working to reduce the supply of crude oil in the market.

US Dollar Index (DXY) trades higher around 105.40 at the time of writing, which could be partly attributed to the upbeat US Treasury yields. The yield on a 10-year US bond improved to 4.50% by the press time.

Market participants will likely pay close attention to economic data releases, including the preliminary US S&P Global PMIs for September and Canada's Retail Sales for July. These figures can provide valuable insights into the economic conditions of both countries, which could be helpful in finding trading opportunities around the USD/CAD pair.

Economic data from the United States (US) released on Thursday exhibited a mixed performance. Initially, it bolstered the US Dollar and indicated the presence of a resilient labor market. However, it subsequently began to undergo a correction.

US Initial Jobless Claims on the week ending on September 15, reported 201,000 figures, swinging from the previous reading of 221,000, the lowest level since January. The data was expected to release a higher figure of 225,000.

The Philadelphia Fed Manufacturing Survey declined to 13.5 in September against the expected reduction of 0.7 from the positive reading of 12 previously. While Existing Home Sales (MoM) declined in August to a monthly figure of 4.04 million from the 4.07 million priors, which was expected to grow at 4.10 million.

As widely anticipated in the market, the Federal Reserve (Fed) decided to maintain interest rates within the 5.25-5.50% range during its Wednesday meeting.

Fed Chairman Jerome Powell, during a press conference, reiterated the Fed's dedication to achieving a 2% inflation target while also stating that the Fed is prepared to increase rates if deemed necessary. These hawkish comments have bolstered the US Dollar and are acting as a tailwind for the USD/CAD pair.