USD/CAD declines towards 1.3400 as oil strengthens, US/Canada GDP eyed


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  • USD/CAD is declining towards 1.3400 amid a sheer recovery in oil prices.
  • The risk-off impulse has faded after china announces economic stimulus to offset the Covid-inspired volatility.
  • Apart from Fed Powell’s speech, the US/Canada GDP data will be keenly watched.

The USD/CAD pair is looking for an immediate cushion after a massive sell-off post failing to sustain above the critical hurdle of 1.3500. The loonie asset is hovering around 1.3433 and is expected to extend its losses towards the round-level support of 1.3400 amid a vertical rally in oil prices. Also, the recovery in the risk-appetite theme is expected to strengthen the Canadian Dollar further.

Meanwhile, the US Dollar Index (DXY) has refreshed its day’s low at 106.14 amid a decline in safe-haven’s appeal. Contrary to that, 10-year US Treasury yields have recovered to near 3.71% as investors have turned anxious ahead of the speech from Federal Reserve (Fed) chair Jerome Powell.

On the United States front, investors are awaiting the release of the quarterly Gross Domestic Product (GDP) data, which will release on Wednesday. The growth rate is expected to remain stable at 2.6%. Federal Reserve (Fed) policymakers brace for a slowdown in the growth rate as it will lead to a deceleration in inflation.

Meanwhile, loonie investors are also awaiting GDP figures, which are due on Tuesday. The annualized GDP is expected to improve to 3.5% vs. the prior release of 3.3%. While, on a quarterly basis, the economic data could decline to 0.4% against the former release of 0.8%.

On the oil front, oil prices have roared firmly on expectations of consideration of supply cuts by the OPEC cartel to offset the recent weakness. Meanwhile, public unrest in China has been calmed for a while as Chinese marshals have barricaded people at home under coercion. However, the situation has not been solved entirely.

It is worth noting that Canada is a leading oil exporter to the United States, therefore, a meaningful recovery in oil prices supports the Canadian Dollar.

USD/CAD

Overview
Today last price 1.3431
Today Daily Change -0.0072
Today Daily Change % -0.53
Today daily open 1.3503
 
Trends
Daily SMA20 1.3432
Daily SMA50 1.3574
Daily SMA100 1.3276
Daily SMA200 1.3015
 
Levels
Previous Daily High 1.3505
Previous Daily Low 1.3381
Previous Weekly High 1.3495
Previous Weekly Low 1.3316
Previous Monthly High 1.3978
Previous Monthly Low 1.3496
Daily Fibonacci 38.2% 1.3458
Daily Fibonacci 61.8% 1.3428
Daily Pivot Point S1 1.3421
Daily Pivot Point S2 1.334
Daily Pivot Point S3 1.3298
Daily Pivot Point R1 1.3545
Daily Pivot Point R2 1.3586
Daily Pivot Point R3 1.3668

 

 

 

 

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