USD/CAD rises above 1.3450 despite broad USD weakness
|- USD/CAD gained traction and climbed above 1.3450 in the American session.
- The US Dollar Index stays deep in negative territory below 102.00 after weak US data.
- WTI declined to $80 area following earlier advance.
Following Monday's sharp decline, USD/CAD stayed relatively quiet during the European trading hours on Tuesday. After retreating toward 1.3400 in the early American session, however, the pair regained its traction and turned positive on the day above 1.3450.
The data from the US revealed on Tuesday that Factory Orders declined at a faster pace than expected in February. More importantly, the US Bureau of Labor Statistics reported that job openings on the last day of February dropped to 9.9 million from 10.5 million in January, pointing to softening in labor market conditions. In turn, the US Dollar (USD) came under heavy selling pressure and the US Dollar Index fell to its lowest level since early February below 101.50.
Despite the persistent USD weakness, USD/CAD managed to reverse its direction with the commodity-sensitive loonie struggling to find demand amid retreating crude oil prices.
The barrel of West Texas Intermediate (WTI), which touched its highest level in over two months near $82, was last seen trading in negative territory at around $80.00. Later in the session, the American Petroleum Institute's Weekly Crude Oil Stock report will be watched closely by market participants.
Meanwhile, Wall Street's main indexes stretch lower after a mixed opening, helping the USD stay resilient against the CAD.
Technical levels to consider
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.