USD/CAD fades spike to 1.30

• The USD/CAD pair trades at 1.2960, having a hit a high of 1.2999 earlier today.
• Heightened trade tensions could mean slower Fed rate hikes

The Canadian dollar fell in early Asia as US-Canada trade dispute escalated after G7 meeting.

Top White House officials accused Canadian PM Trudeau of backstabbing the US after President Trump called him "very dishonest and weak". Further, the risk sentiment soured as Trump withdrew support for a G7 communique which called for a fair and balanced trade.

Consequently, the USD/CAD gapped higher to 1.2999 in early Asia, only to fall back to 1.2960.

Looking ahead - The FX desks may offer USD on fears the heightened trade tensions may force the Fed to go slow with the rate hikes. 

USD/CAD Technical Levels

Support: 1.2950 (10-day moving average), 1.2920 (Friday's low), 1.2856 (June 6 low).

Resistance: 1.30 (psychological hurdle), 1.3067 (June 5 high), 1.3125 (March high).