USD/CAD clings to modest gains above 1.3300 ahead of US PMI data

  • USD/CAD is rising modestly after closing flat on Tuesday.
  • US Dollar Index consolidates weekly gains near 94.00.
  • IHS Markit will release Manufacturing and Services PMI data for the US.

The USD/CAD pair closed virtually unchanged near 1.3300 on Tuesday and started to edge higher on Wednesday. As of writing, the pair was up 0.15% on a daily basis at 1.3323.

Focus shifts to US PMI data

In the absence of significant fundamental drivers, the USD's market valuation remains the primary driver of USD/CAD's movements.

The US Dollar Index (DXY) gained nearly 0.5% on Tuesday and touched its highest level since late July at 94.25 on Wednesday. However, the upbeat market mood, as reflected decisive gains seen in major European equity indexes, is making it difficult for the DXY to preserve its bullish momentum. 

Ahead of the IHS Markit's preliminary Manufacturing and Services PMI data for September, the DXY is flat on the day near 94.00. Moreover, FOMC Chairman Jerome Powell is scheduled to testify before Congress at 1400 GMT. On Tuesday, Powell refrained from delivering any comments on the policy outlook during his testimony before the House Financial Services Committee. 

On the other hand, crude oil prices are staying relatively calm on Wednesday, failing to provide a directional clue to USD/CAD. The barrel of West Texas Intermediate (WTI) registered modest gains on Tuesday and was last seen gaining 0.55% on the day at $39.95. Later in the day, the US Energy Information Administration (EIA) will release its weekly Crude Oil Stock Change data.

Technical levels to watch for


Today last price 1.3321
Today Daily Change 0.0017
Today Daily Change % 0.13
Today daily open 1.3304
Daily SMA20 1.3155
Daily SMA50 1.3266
Daily SMA100 1.3484
Daily SMA200 1.3522
Previous Daily High 1.3346
Previous Daily Low 1.3284
Previous Weekly High 1.3247
Previous Weekly Low 1.3128
Previous Monthly High 1.3451
Previous Monthly Low 1.302
Daily Fibonacci 38.2% 1.3308
Daily Fibonacci 61.8% 1.3322
Daily Pivot Point S1 1.3277
Daily Pivot Point S2 1.325
Daily Pivot Point S3 1.3215
Daily Pivot Point R1 1.3339
Daily Pivot Point R2 1.3373
Daily Pivot Point R3 1.34



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