USD/CAD flirting with 2-week lows, below 1.3400 handle

   •  The USD continues to be weighed down by increasing Fed rate cut bets.
   •  Bearish traders seemed largely unaffected by weaker Crude Oil prices.
   •  Focus now shifts to the US economic releases for some fresh impetus.

The USD/CAD pair held on the defensive for the third consecutive session on Wednesday and is currently placed at fresh two-week lows, around the 1.3375 region.

The pair extended its sharp retracement slide from multi-month tops and continued losing ground through the early European session on Wednesday amid the prevailing US Dollar selling bias - led by firming expectations that the Fed will eventually move to cut interest rates by the end of this year. 

Following St. Louis Fed President James Bullard's comments that a rate cut may be needed soon, the Fed Chair Jerome Powell on Tuesday refrained from repeating the central bank's patient stance rather hinted at the possibility of an interest rate cut in the wake of gloomy economic growth outlook.

Bearish traders seemed rather unaffected by a weaker trading sentiment around Crude Oil prices, which tend to undermine demand for the commodity-linked currency - Loonie, with the USD price dynamics turning out to be an exclusive driver of the pair's ongoing slide to the lowest level since May 22.

Moving ahead, Wednesday's US economic docket - highlighting the release of ADP report on private sector employment and the ISM non-manufacturing PMI, will now be looked upon for some short-term trading opportunities later during the early North-American session.

Technical levels to watch