USD/CAD jumps to 2-week tops, nearing mid-1.3300s
| • The global flight to safety lifts the USD to near two-week tops.
• Weaker oil prices undermine Loonie and remained supportive.
• Today’s second-tier economic data might provide some impetus.
The USD/CAD pair built on the overnight positive momentum and climbed further beyond the 1.3300 handle to hit over two-week tops in the last hour.
A slowdown in China economy to 28-year lows, followed by a downward revision to its global growth forecasts by the IMF fanned fresh worries over global growth and boosted the US Dollar's traditional safe-haven appeal.
Meanwhile, weakening global economic data were cited as a headwind for crude oil prices, which further undermined the commodity-linked currency - Loonie and remained supportive of the up-move to the highest level since Jan. 7.
The latest leg of a sudden pick up over the past hour or so could also be attributed to some technical buying on a sustained move beyond the 1.3315-20 region, lifting the pair back towards 50-day SMA support-turned-resistance.
It would now be interesting to see if bulls are able to maintain their dominant position amid relatively thin economic docket, featuring the release of Canadian manufacturing sales and existing home sales data from the US.
Technical levels to watch
On a sustained move beyond the mentioned barrier, around the 1.3345 region, the pair is likely to aim towards reclaiming the 1.3400 round figure mark. On the flip side, any meaningful retracement now seems to find immediate support near the 1.3300-1.3290 region, which is followed by support near the 1.3255-50 horizontal zone.
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.