USD/CAD consolidates losses around 1.2300 ahead of mid-tier data
|- USD/CAD closed previous two days in the negative territory.
- US Dollar Index fluctuates in a tight range below 92.00.
- Focus shift to mid-tier data releases from US and Canada.
Following Monday's deep correction, the USD/CAD pair extended its slide on Tuesday amid broad-based USD weakness. In the absence of significant fundamental drivers, the pair seems to have gone into a consolidation phase near 1.2300, where it closed the previous day.
DXY turns quiet below 92.00 ahead of PMI data
While testifying before the House Select Subcommittee on the Coronavirus Crisis on Tuesday, FOMC Chairman Jerome Powell refrained from delivering any surprising remarks on the policy outlook and the greenback struggled to find demand. The US Dollar Index (DXY) finished the second straight day with losses and allowed the bearish momentum on USD/CAD to remain intact.
Ahead of the IHS Markit's preliminary June Manufacturing and Services PMI report, the DXY is clinging to small recovery gains above 91.70. New Home Sales for May will be featured in the US economic docket as well. On the other hand, Statistics Canada will release April Retail Sales data.
Meanwhile, the barrel of West Texas Intermediate (WTI) is up modestly on the day at $73.35, helping the commodity-related loonie stay resilient against its rivals. Later in the session, the US Energy Information Administration's (EIA) weekly Crude Oil Stocks Change data will be looked upon for fresh impetus.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.