USD/CAD extends decline to fresh multi-week lows near 1.2430

• USD/CAD remains on track to close second straight day in the negative territory.
• Rising crude oil prices provide a boost to CAD on Thursday.
• USD remains on the back foot after disappointing US data.

The USD/CAD pair continues to push lower in the American trading hours pressured by broad-based USD weakness and rising crude oil prices. As of writing, the pair was trading at its lowest level in three weeks at 1.2436, losing 0.7% on a daily basis.

DXY looks to close below 92.00

Earlier in the day, the data from the US showed that the US Bureau of Economic Analysis' first estimate of the annualized second-quarter Gross Domestic Product (GDP) growth arrived at 6.5%. This reading missed the market expectation of 8.5% by a wide margin. Additionally, the US Department of Labor reported there were 400,000 initial claims for unemployment benefits in the week ending July 24, compared to analysts' estimate of 3.8%.

The greenback, which came under renewed selling pressure on Wednesday after FOMC Chairman Jerome Powell adopted a dovish tone, continued to weaken against its rivals. As of writing, the US Dollar Index (DXY) was down 0.4% at 91.90.

On the other hand, the upbeat market mood, as reflected by rising US stocks, helped crude oil prices gain traction on Thursday. With the barrel of West Texas Intermediate (WTI) gaining more than 1.5%, the commodity-related loonie is preserving its strength.

On Friday, Statistics Canada will release May GDP data alongside the Industrial Product Price Index for June. The Personal Consumption Expenditures (PCE) Price Index will be featured in the US economic docket.

Technical levels to watch for