USD/CAD extends gains around 1.3580, US, Canada PMI data eyed

USD/CAD receives upward support after the moderate US data on Friday.
US bills were successfully passed to avert a government shutdown, securing funding until November 17.
The recovery in Crude oil prices could limit the losses of the Canadian Dollar.

Akhtar Faruqui FXStreet

USD/CAD kicks off the week by continuing the gains in the second trading session. The spot price is bidding the quotes higher around 1.3580 during the early Asian session on Monday.

The US Dollar Index (DXY) holds ground to continue to gain in the second trading session after the moderate datasets from the United States (US). The spot price bids higher around 106.20.

Additionally, the upbeat US Treasury Yields are contributing support to the USD’s strength. The yield on the 10-year US Treasury bond stands at 4.61% by the press time, up by 0.96%.

The USD/CAD pair faces upward support, primarily due to the upbeat US Dollar (USD) after the moderate economic data released on Friday. The US Michigan Consumer Sentiment Index (Sep) improved to 68.1 from the previous figure of 67.7, which was expected to remain unchanged.

US Core PCE - Price Index (YoY) for August rose 3.9% as estimated, eased from the previous reading of 4.3%. Core PCE (MoM) showed a soft reading of 0.1% against the market consensus to be consistent at the 0.2% prior.

Following the Friday session, bills were successfully passed in the US to avert a government shutdown, securing funding until November 17. This development has prompted a resumption of the US Dollar (USD) upward trajectory.

On the other side, the CAD received downward pressure due to the downbeat Gross Domestic Product (MoM) data for July, which reported flat at 0.0% against the market expectations of 0.1% growth. The GDP was at 0.2% contraction in June.

Crude oil prices retreated from one-year highs over the last two trading sessions in the previous week, due to market caution on the Fed’s interest rates trajectory. This development weakened the Canadian Dollar (CAD) against the Greenback as Canada is the biggest oil exporter to the United States (US).

However, Western Texas Intermediate (WTI), the US crude oil benchmark attempts to break the losing streak on Monday, trading around $90.10 per barrel.

Traders await US ISM Manufacturing PMI for September ahead of the Fed’s Chair Jerome Powell's speech on Monday. The Canada’s S&P Global Manufacturing PMI (Sep) will also be eyed.

USD/CAD: additional important levels

Overview
Today last price	1.3575
Today Daily Change	-0.0002
Today Daily Change %	-0.01
Today daily open	1.3577

Trends
Daily SMA20	1.354
Daily SMA50	1.3473
Daily SMA100	1.3403
Daily SMA200	1.3459

Levels
Previous Daily High	1.3585
Previous Daily Low	1.3417
Previous Weekly High	1.3585
Previous Weekly Low	1.3417
Previous Monthly High	1.3694
Previous Monthly Low	1.3379
Daily Fibonacci 38.2%	1.3521
Daily Fibonacci 61.8%	1.3481
Daily Pivot Point S1	1.3468
Daily Pivot Point S2	1.3358
Daily Pivot Point S3	1.33
Daily Pivot Point R1	1.3636
Daily Pivot Point R2	1.3694
Daily Pivot Point R3	1.3804

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

USD/JPY hovers below 160.50 intervention zone ahead of FOMC decision

USD/JPY remains below the 160.50 intervention zone in the Asian session on Wednesday. Despite the BoJ's rate hike to its highest level since 1995, Japan's borrowing costs remain significantly lower than the US, undermining the Japanese Yen. However, thpair US Dollar remains on the back foot amid the optimism over the US-Iran peace deal and ahead of the Fed policy decision, weighing on the pair.

AUD/USD holds steady above 0.7050; looks to Fed for fresh impetus

AUD/USD is consolidating above mid-0.7000s in the Asian session on Wednesday as traders await the outcome of a two-day FOMC meeting due later in the day. In the meantime, the optimism over an interim peace deal between the US and Iran keeps the US Dollar bulls on the defensive. This, along with the RBA's hawkish pause on Tuesday, acts as a tailwind for the pair.

Gold consolidates above $4,300 as traders look to Fed rate decision for fresh impetus

Gold struggles to capitalize on its weekly gains, though it holds above the $4,300 mark through the Asian session. The latest optimism over an interim US-Iran peace deal keeps the US Dollar on the defensive, which is seen supporting the bullion. The commodity remains below the weekly swing high set on Monday and a technically significant 200-day SMA level.

Bitcoin holds $65,000 as Uniswap and Worldcoin extend rally

Bitcoin (BTC) is experiencing headwinds above $65,000 following the Bank of Japan’s rate hike to 1% on Tuesday. Still, Uniswap (UNI) and Worldcoin (WLD) continue to rally amid rising retail interest, while Bitcoin’s recovery grows heavy. Bitcoin edges higher at press time on Wednesday, inching closer to $66,000 as it maintains a mixed near-term tone following the recent rebound from $60,000.

The most important event will be the Fed meeting with Mr. Warsh now in charge

The most important event will be the Fed meeting on Wednesday, with Mr. Warsh now in charge. As more than one analyst points out, the case for holding rates the same is strengthened by the Iran deal and the prospect of the Strait re-opening, although nobody thinks Warsh can marshal enough doves to do a cut this time.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.