• USD/CAD attracts some buyers near 1.3700, though the attempted recovery lacks follow-through.
• An uptick in Oil prices underpins the Loonie and acts as a headwind amid subdued USD price action.
• Traders also seem reluctant to place aggressive bets ahead of the crucial US consumer inflation data.

The USD/CAD pair bounces off a nearly four-week trough touched during the Asian session on Wednesday and reverses a part of the previous day's downfall. Spot prices manage to hold above the 1.3700 mark, though lack bullish conviction, warranting some caution before positioning for any meaningful recovery. 

Crude Oil prices regain positive traction amid estimates of a fall in US inventories and the risk of a broadening conflict in the Middle East, which is seen underpinning the commodity-linked Loonie and acting as a headwind for the USD/CAD pair. The American Petroleum Institute (API) data showed on Tuesday that US crude stocks shrunk by 5.21 million barrels during the week ended August 9, suggesting higher demand in the world's biggest oil consumer.