USD/CAD advances toward 1.33 on falling crude oil prices, dismal Canada data


  • Crude oil falls sharply on hopes of Saudi production rapidly returning to normal.
  •  Manufacturing sales in Canada declined more than expected in July.
  • US Dollar Index retreats below 98.50 despite upbeat data.

The USD/CAD pair gained traction in the last hour and rose to its highest level in nearly two weeks at 1.3298 as the falling crude oil prices forced the commodity-related Loonie to weaken against its rivals. As of writing, the pair was up 0.37% on the day at 1.3283.

Citing Saudi sources familiar with the latest developments, Reuters today reported that Saudi Arabia's oil output was expected to return to normal levels in the next two-three weeks, much faster than initially expected. Crude oil prices came under heavy selling pressure and the barrel of West Texas Intermediate was last seen trading at $59.25, losing 4.15% on a daily basis.

Additionally, today's data from Canada revealed that manufacturing sales in July declined by 1.3% following June's decrease of 1.4% and fell short of the market expectation of -0.2% to further weigh on the CAD.

USD struggles to preserve its strength

On the other hand, the Greenback, which capitalized on risk-off flows on Monday, lost interest amid the recovering market sentiment and caused the pair to lose its bullish momentum.  At the moment, the US Dollar Index (DXY) was down 0.15% on the day at 98.48. Meanwhile, the data published by the Federal Reserve earlier today showed that the industrial production in the US rose 0.6% in August to surpass analysts' estimate of +0.2% but failed to help the DXY stretch higher.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3284
Today Daily Change 0.0044
Today Daily Change % 0.33
Today daily open 1.324
 
Trends
Daily SMA20 1.326
Daily SMA50 1.3207
Daily SMA100 1.3275
Daily SMA200 1.3313
Levels
Previous Daily High 1.3272
Previous Daily Low 1.321
Previous Weekly High 1.329
Previous Weekly Low 1.3134
Previous Monthly High 1.3346
Previous Monthly Low 1.3178
Daily Fibonacci 38.2% 1.3248
Daily Fibonacci 61.8% 1.3233
Daily Pivot Point S1 1.321
Daily Pivot Point S2 1.3179
Daily Pivot Point S3 1.3148
Daily Pivot Point R1 1.3271
Daily Pivot Point R2 1.3302
Daily Pivot Point R3 1.3333

 

 

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