USD/CAD struggles for a firm intraday direction, consolidates above 1.3500 mark

• USD/CAD seesaws between tepid gains/minor losses amid mixed fundamental cues.
• A modest USD uptick lends support amid bets for a larger interest rate cut by the BoC.
• Dovish Fed expectations and a positive risk tone cap gains for the USD and the major.

The USD/CAD pair kicks off the new week on a subdued note and oscillates in a narrow band, above the 1.3500 psychological mark through the Asian session. The mixed fundamental backdrop, meanwhile, warrants some caution before positioning for a firm near-term direction and extension of the pair's goodish rebound from the 1.3420 area, or the lowest level since March 8 touched last week. 

The US Dollar (USD) attracts some haven flows amid the risk of a further escalation of geopolitical tensions in the Middle East. The Canadian Dollar (CAD), on the other hand, is weighed down by bet for a bigger interest rate cut by the Bank of Canada (BoC). This, in turn, acts as a tailwind for the USD/CAD pair, though a combination of factors hold back traders from placing fresh bullish bets and caps the upside. 

The global risk sentiment gets an additional boost in reaction to more stimulus announced by China over the weekend. This, along with expectations for a more aggressive policy easing by the Federal Reserve (Fed), keeps a lid on any meaningful upside for the safe-haven buck and the USD/CAD pair. In fact, the markets are pricing in a greater chance of another oversized rate cut by the Fed at its November meeting.

Meanwhile,  the possibility of a widening Middle East conflict, to a larger extent, overshadows worries about slowing demand in China - the world's top oil importer - and lends support to Crude Oil prices. This, in turn, is seen underpinning the commodity-linked Loonie and contributing to capping the USD/CAD pair as traders now look to Fed Chair Jerome Powell's speech for a fresh impetus later during the US session.