USD/CAD advances beyond 1.3250 on uninspiring data from Canada
- The Raw Material Price Index (RMPI) fell 1.8% in August in Canada.
- US Dollar Index rose to multi-year highs above 99.40 on Monday.
- Crude oil prices extend slide to further weigh on the CAD.
After edging lower toward the 1.3220 handle on Monday, the USD/CAD pair reversed its direction in the last hour and climbed to a fresh session high of 1.3260 as the uninspiring data from Canada and falling crude oil prices made it difficult for the CAD to find demand. As of writing, the pair was trading at 1.3255, adding 0.08% on a daily basis.
Statistics Canada's monthly report revealed that the Raw Material Price Index (RMPI) in August fell 1.8% and the Industrial Product Price Index rose 0.2% to fall short of the market expectation of 0.3%.
Crude oil prices push lower on Monday
Meanwhile, reports suggesting that Saudi Arabia has sent messages to Iran's president through the leaders of other countries helped ease the tension in the Middle East and weighed on crude oil prices. The barrel of West Texas Intermediate (WTI) was last seen trading at $55.18, losing 1.6% on the day.
On the other hand, the poor performance of the EUR helps Greenback continue to find demand at the start of the week and allows the pair to cling to its gains. Ahead of mid-tier data, the Institute for Supply Management (ISM) Chicago PMI and the Dallas Fed Manufacturing Survey, the US Dollar Index is now at its highest level in 29 months at 98.41.
On Tuesday, gross domestic product (GDP) data from Canada and the Purchasing Managers' Index (PMI) figures from the United States will be looked upon for fresh catalysts.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
