USD/CAD bounds over 1.35 as Greenback pushes up across the board


  • The USD/CAD had cleared the 1.3500 handle in Tuesday trading.
  • The oil-backed Loonie is unable to find gains as the DXY captures the broader market.
  • US data to feature heavily in the back half of the week.

The USD/CAD has decisively reclaimed the 1.3500 major handle for Tuesday. The US Dollar Index (DXY) is pumping higher across the entire market, bolstered by a hawkish Fed and risk aversion taking a bite out of the market's appetite for riskier assets.

The broad US Dollar Index (DXY) is at its highest levels since last November, and the Greenback (USD) is taking a step higher. Even with oil prices rising for Tuesday which would normally prop up the Loonie (CAD), the USD is still the clear winner on the charts.

US Treasury yields are knocking on multi-year highs with the 10-year Treasury yield holding above 4.5%, pushing the USD higher. US markets are increasingly concerned about a potential US government shutdown looming, knocking risk appetite even further back.

Economic calendar: US figures in focus

On the data docket it's notably CAD-thin, leaving investors to focus almost entirely on US data for this week.

Tuesday saw US Housing Price Index figures cleanly beat expectations, printing at 0.8%, leaping over the forecast 0.5% and doubling the previous reading of 0.4%.

Wednesday will bring US Durable Goods Orders (forecast: -0.5%, previous -5.2%), and investors will be focusing on US Gross Domestic Product (GDP) figures due on Thursday. Median market forecasts are anticipating a steady print at an annualized 2.1% for the second quarter.

The trading week will close out with US Personal Consumption Expenditure (PCE) Price Index data on Friday. PCE, the Federal Reserve's (Fed) preferred US inflation measure, is expected to hold steady at 0.2% for the month of August.

A data beat could see the Greenback clear even further ground with Fed policymakers already leaning towards the potential for further rate hikes in the future if inflation refuses to bed down.

USD/CAD technical outlook

The Greenback is up 0.3% against the Loonie in Tuesday's market session, vaulting the 1.3500 mark and poised to extend further beyond the 200-hour Simple Moving Average (SMA) currently chalked in near 1.3480.

Near-term resistance is coming from last week's swing high near 1.3525, and intraday bullish momentum might find a covering pullback from here.

On the daily candlesticks, the USD/CAD is geared for a decisive split from the 200-day SMA, which has constrained price action for several days and is currently settling just north of 1.3450. An extended bull run will see the pair set for a re-challenge of early September's peak of 1.3695.

USD/CAD daily chart

USD/CAD technical levels

USD/CAD

Overview
Today last price 1.3524
Today Daily Change 0.0070
Today Daily Change % 0.52
Today daily open 1.3454
 
Trends
Daily SMA20 1.3545
Daily SMA50 1.3446
Daily SMA100 1.34
Daily SMA200 1.3461
 
Levels
Previous Daily High 1.3492
Previous Daily Low 1.3453
Previous Weekly High 1.3528
Previous Weekly Low 1.3379
Previous Monthly High 1.364
Previous Monthly Low 1.3184
Daily Fibonacci 38.2% 1.3468
Daily Fibonacci 61.8% 1.3477
Daily Pivot Point S1 1.3441
Daily Pivot Point S2 1.3428
Daily Pivot Point S3 1.3402
Daily Pivot Point R1 1.3479
Daily Pivot Point R2 1.3505
Daily Pivot Point R3 1.3518

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD weakens below 0.6650 amid firmer US Dollar, stronger US PMI data

AUD/USD weakens below 0.6650 amid firmer US Dollar, stronger US PMI data

The AUD/USD pair trades in negative territory for the third consecutive day around 0.6640 during the early Asian session on Monday. The downtick of the pair is backed by the stronger US Dollar after the optimistic US S&P Purchasing Managers Index data for June.

AUD/USD News

EUR/USD hangs near its lowest level since early May, seems vulnerable below 1.0700 mark

EUR/USD hangs near its lowest level since early May, seems vulnerable below 1.0700 mark

EUR/USD struggles to attract any meaningful buyers and is undermined by a combination of factors. Political uncertainty in Europe, along with Friday’s dismal Eurozone PMIs, seems to weigh on the Euro. The Fed’s relatively hawkish stance lifts the USD to a multi-week top and further acts as a headwind.

EUR/USD News

Gold holds below $2,350 on stronger US PMI data

Gold holds below $2,350 on stronger US PMI data

Gold price edges lower to $2,320 after retreating from two-week highs around $2,368 during the early Asian session on Monday. The stronger-than-expected US Purchasing Managers Index released on Friday weighs on the yellow metal.

Gold News

Base to decentralize further with fault proofs, testnet launch expected mid July

Base to decentralize further with fault proofs, testnet launch expected mid July

Base, a Layer 2 scaling solution by Coinbase has observed a surge in usage of the chain, amidst decline in fees. Several applications on the Layer 2 chain contributed to the rise in activity.

Read more

Week ahead: US PCE inflation the highlight of a relatively light agenda

Week ahead: US PCE inflation the highlight of a relatively light agenda

Core PCE inflation to test bets of two Fed rate cuts in 2024. Yen awaits BoJ Summary of Opinions, Tokyo CPI. Canadian CPI data also enters the spotlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures