USD/CAD trades above 1.3200 ahead of US data
|- Coronavirus concerns continue to weigh on market sentiment.
- WTI trades at its lowest level since early October.
- US Dollar Index stays near 98 ahead of Durable Goods Orders data.
After closing the first day of the week in the positive territory, the USD/CAD pair continued to push higher on Tuesday and rose above the 1.32 mark for the first time since early December. As of writing, the pair was up 0.07% on the day at 1.3202.
Concerns over the potential negative impact of coronavirus outbreak on the Chinese economy and global trade continue to weigh on crude oil prices to make it difficult for the commodity-sensitive CAD to find demand. The barrel of West Texas Intermediate, which erased more than 7% last week, was last seen posting small recovery gains near $53.
USD stays strong ahead of key macro events
On the other hand, the greenback takes advantage of the risk aversion and helps the pair preserve its bullish momentum with the US Dollar Index adding 0.07% on the day at 98.
In the second half of the day, Durable Goods Orders, Conference Board's Consumer Confidence Index and the Richmond Fed's Manufacturing Survey from the US will be looked upon for fresh impetus. There won't be any macroeconomic data releases from Canada on Tuesday.
On Wednesday, the FOMC will announce its interest rate decision and publish the monetary policy statement, which will be followed by FOMC Chairman Jerome Powell's press conference.
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.