USD/CAD slides to fresh session lows, back near mid-1.3200s
|- The USD failed to capitalize on the post-FOMC move up and capped gains.
- A sudden pickup in Oil prices underpinned Loonie and exerted some pressure.
The USD/CAD pair extended its steady intraday rejection slide from the very important 200-day SMA and dropped to fresh session lows, around the 1.3270-65 region in the last hour.
The pair continued with its struggle to find acceptance/build on the momentum further beyond the 1.3300 round-figure mark and was further weighed down by renewed US Dollar selling bias. With investors looking past Wednesday's hawkish rate cut by the Fed, a fresh leg of a downfall in the US Treasury bond yields kept the USD bulls on the defensive and kept a lid on the pair's early attempted bullish move.
This coupled with a sudden intraday upsurge in Crude Oil prices provided an additional boost to the commodity-linked currency - Loonie and further collaborated to the pair's modest intraday pullback from two-week tops. Oil prices rallied over 2% amid concerns over disruption to supplies from Saudi Arabia and whether the Kingdom will be able to return to full output following the weekend attacks on key oil facilities.
Oil prices were also underpinned by fears of a further escalation of geopolitical tensions in the Middle East, especially after Iran's foreign minister said this Thursday that the response to any US or Saudi military strike on the Islamic Republic would be "all-out war".
On the economic data front, the US initial weekly jobless claims rose less-than-expected to 208K during the the week ended September 13 from the previous week's upwardly revised reading of 206K (204K reported earlier) while the Philly Fed Manufacturing Index came in at 12.0 for September as against 11.0 expected, albeit did little to provide any meaningful impetus to the greenback or lend any support to the major.
Technical levels to watch
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