USD/CAD rebounds above 1.2660 after testing 1.2600 earlier in the day


  • USD/CAD is posting small daily gains above 1.2660.
  • US Dollar Index erased majority of daily losses in American session.
  • WTI edges lower toward $70 ahead of API inventory data.

The USD/CAD pair came under strong bearish pressure in the early American session and dropped to 1.2600 area before staging a decisive rebound. As of writing, the pair was up 0.13% on a daily basis at 1.2667.

CPI-inspired USD selloff remains short-lived

Earlier in the day, the USD faced sudden selling pressure after the US Bureau of Labor Statistics announced that the Core Consumer Price Index (CPI) declined to 4% on a yearly basis in August from 4.3% in July. Furthermore, the report revealed that the annual CPI edged lower to 5.3% from 5.4% as expected.

Following a sharp decline to 92.32, however, the US Dollar Index (DXY) reversed its direction with the market mood souring after Wall Street's opening bell. Currently, the DXY is posting small daily losses at 92.53 and the S&P 500 Index is down 0.35% at 4,452.

On the other hand, the data from Canada showed that Manufacturing Sales declined by 1.5% in July, compared to analysts' estimate for a decrease of 1%. On Wednesday, August inflation figures will be featured in the Canadian economic docket.

In the meantime, the risk-averse market environment made it difficult for crude oil prices to continue to push higher. Ahead of the American Petroleum Institue's (API) Weekly Crude Oil Stock data, the barrel of West Texas Intermediate (WTI) is down 0.6% at $70.20, not allowing the commodity-related loonie to erase its losses.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.267
Today Daily Change 0.0021
Today Daily Change % 0.17
Today daily open 1.2649
 
Trends
Daily SMA20 1.2644
Daily SMA50 1.2581
Daily SMA100 1.239
Daily SMA200 1.2526
 
Levels
Previous Daily High 1.2695
Previous Daily Low 1.2638
Previous Weekly High 1.2762
Previous Weekly Low 1.2518
Previous Monthly High 1.2949
Previous Monthly Low 1.2453
Daily Fibonacci 38.2% 1.266
Daily Fibonacci 61.8% 1.2674
Daily Pivot Point S1 1.2626
Daily Pivot Point S2 1.2603
Daily Pivot Point S3 1.2569
Daily Pivot Point R1 1.2683
Daily Pivot Point R2 1.2718
Daily Pivot Point R3 1.2741

 

 

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