USD/CAD sits at session tops, back closer to 1.28 handle

   •  A goodish pickup in the US bond yields underpins USD demand.
   •  Bullish oil prices now seemed to keep a lid on further up-move.
   •  Traders now eye BoC business outlook survey for fresh impetus.

After an initial dip to 1.2760 level, the USD/CAD pair regained some positive traction and was now seen building on Friday's recovery move from over 1-month lows.

With investors looking past the latest US jobs report, a goodish pickup in the US Treasury bond yields helped the US Dollar to catch some fresh bids at the start of a new trading week and was seen as one of the key factors driving the pair higher. 

However, the prevalent positive trading sentiment around crude oil prices might underpin demand for the commodity-linked currency - Loonie and might collaborated towards keeping a lid on any strong up-move, at least for the time being. 

Meanwhile, today's modest uptick could also be attributed to some short-covering from a technically important moving average support, marked by 50-day SMA. Hence, it would be prudent to wait for a strong follow-through buying interest before confirming that the pair might have formed a firm base in the near-term. 

With an empty US economic docket, today's release of the quarterly BoC Business Outlook Survey should influence the Canadian Dollar and eventually provide some fresh impetus later during the early NA session.

Technical levels to watch

Bulls would be eyeing for a clear break through the 1.2800 handle, above which the pair seems all set to aim towards testing the 1.2835-40 hurdle before eventually darting towards reclaiming the 1.2900 round figure mark.

On the flip side, the 50-day SMA, currently near mid-1.2700s, might continue to protect the immediate downside, which if broken could accelerate the fall towards 100-day SMA support near the 1.2700-1.2695 region.