• USD/CAD climbs sharply due to lower WTI prices spurred by China’s data showing its slowing economy.
  • The New York Fed Empire State Manufacturing Index for August tumbles to -31.3, led by business conditions deteriorating.
  • The USD/CAD might get some cues from Canadian inflation figures, alongside US Federal Reserve minutes to be released on Wednesday.

The USD/CAD rebounds from around the 200-day EMA and rallies sharply towards its daily high at 1.2934 due to a risk-off impulse spurred by weak Chinese economic data, alongside lower oil prices. WTI price slid 3.50%, below the $90 per barrel, a tailwind for the USD/CAD.

The USD/CAD is exchanging hands at 1.2896, after opening near its daily lows, reached during the Asian session, at 1.2766, but risk-aversion and broad US dollar strength bolstered the major, extending its gains throughout the day.

Early in the US session, the New York Fed reported its business conditions for August, also known as the NY Fed Empire State index, tumbled to -31.3, worse than estimations as orders and shipments decelerated.

In the meantime, WTI dropped on news of China’s economic slowdown, which reignited recession fears across the globe. Confirmation of the aforementioned is the People’s Bank of China (PBoC) cut its 1-year Medium-Term Lending Facility (MLF) by ten bps to 2.75%. The PBoC reacted to weaker than estimated data, like Industrial Production and Retail Sales, missing forecasts.

What to watch

In the week, the Canadian economic docket will feature inflation data. While the US calendar will reveal Federal Reserve minutes, US Housing data, Initial Jobless Claims,  the Conference Board Leading index, and Fed speak.

USD/CAD Daily chart

USD/CAD Key Technical Levels

USD/CAD

Overview
Today last price 1.2896
Today Daily Change 0.0113
Today Daily Change % 0.88
Today daily open 1.2782
 
Trends
Daily SMA20 1.2855
Daily SMA50 1.2883
Daily SMA100 1.2799
Daily SMA200 1.2746
 
Levels
Previous Daily High 1.2803
Previous Daily Low 1.274
Previous Weekly High 1.295
Previous Weekly Low 1.2728
Previous Monthly High 1.3224
Previous Monthly Low 1.2789
Daily Fibonacci 38.2% 1.2779
Daily Fibonacci 61.8% 1.2764
Daily Pivot Point S1 1.2747
Daily Pivot Point S2 1.2711
Daily Pivot Point S3 1.2683
Daily Pivot Point R1 1.281
Daily Pivot Point R2 1.2838
Daily Pivot Point R3 1.2874

 

 

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