USD/CAD edges lower toward 1.3440, crude oil selloff limits pair's losses

WTI extends slide in the second half of the day, loses more than 2%.
Consumer confidence deteriorates in September in the US.
Falling US T-bond yields and dismal data weigh on the USD.

Eren Sengezer FXStreet

The USD/CAD spent the majority of the day moving sideways near the 1.3250 handle but came under modest pressure in the last hour amid broad-based USD weakness. As of writing, the pair was down 0.13% on the day at 1.3243.

DXY loses traction

The data published by the Conference Board (CB) today showed that the consumer confidence deteriorated in September with the CB Consumer Confidence Index slumping to 125.1 to miss the market expectation of 133.5 by a wide margin. The disappointing data caused the US Dollar Index to broke below its daily consolidation channel during the American trading hours.

Meanwhile, reports of US House Democrats pushing for US President Trump's impeachment and the lack of positive developments surrounding the US-China trade conflict seem to be weighing on the market sentiment. After closing the last six days in the negative territory, the 10-year US Treasury bond yield extended its slide today and is now losing nearly 4%, putting additional pressure on the US Dollar Index (DXY), which is erasing 0.14% on a daily basis.

On the other hand, falling crude oil prices make it difficult for the commodity-sensitive Loonie to outperform the USD. Hurt by the risk-off flows, the barrel of West Texas Intermediate is trading at $57.30, losing more than 2% on the day. Later in the session, the American Petroleum Institue's weekly crude oil inventory report will be looked upon for fresh impetus.

The economic docket tomorrow won't be featuring any significant macroeconomic data releases from the US or Canada.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3249
Today Daily Change	-0.0014
Today Daily Change %	-0.11
Today daily open	1.3263

Trends
Daily SMA20	1.3253
Daily SMA50	1.3227
Daily SMA100	1.3267
Daily SMA200	1.331

Levels
Previous Daily High	1.3305
Previous Daily Low	1.3254
Previous Weekly High	1.331
Previous Weekly Low	1.321
Previous Monthly High	1.3346
Previous Monthly Low	1.3178
Daily Fibonacci 38.2%	1.3286
Daily Fibonacci 61.8%	1.3274
Daily Pivot Point S1	1.3243
Daily Pivot Point S2	1.3223
Daily Pivot Point S3	1.3192
Daily Pivot Point R1	1.3294
Daily Pivot Point R2	1.3325
Daily Pivot Point R3	1.3345

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.

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