USD/CAD advances to 1.3260 area as CAD weakens on falling crude oil prices

• US Dollar Index erases the majority of Tuesday's losses.
• Crude oil prices come under pressure on supply recovery. 
• Coming up: The EIA's weekly crude oil stock report.

The USD/CAD pair lost around 30 pips on Tuesday pressure by the broad-based USD weakness but didn't have a recovering those losses as the Loonie seems to be having a difficult time amid falling crude oil prices. As of writing, the pair was trading at 1.3262, adding 0.17% on a daily basis.

Crude oil remains under bearish pressure

Earlier today, citing sources familiar with the matter, Reuters reported that the Saudi Arabian state oil giant, Aramco, has restored oil production capacity to 11.3mln barrels per day (bpd) to weigh on crude oil prices. The barrel of West Texas Intermediate was last seen trading at $56.45, losing 0.5% on a daily basis and hurting the demand for the commodity-sensitive CAD. Later in the session, the Energy Information Administration's (EIA) weekly crude oil stock report from the US will be looked upon for fresh impetus.

The only data featured in the US economic docket on Wednesday will be the new home sales. More importantly, FOMC members Brainard and George are both scheduled to deliver speeches. 

Ahead of these events, the US Dollar Index, which closed 0.3% lower yesterday, is up 0.28% on the day at 98.62, allowing the pair to stay in the positive territory. 

Technical levels to watch for