USD/CAD rebounds from 1.3500 as oil corrects, US Dollar regains control


  • USD/CAD finds significant bids near 1.3500 as the US Dollar resumes its upside journey.
  • The US Dollar Index prepares for a fresh upside despite the Fed is expected to keep interest rates unchanged.
  • One-time robust economic data is insufficient to warrant economic growth in the Chinese economy.

The USD/CAD pair recovers swiftly as the downside momentum exhausts near the psychological support of 1.3500 in the London session. The Loonie asset rebounds to near 1.3530 as the oil price corrects after printing a fresh 10-month high near $91.00 and the US Dollar Index (DXY) regains control after a nominal correction from a six-month high at 105.40.

S&P500 futures generated nominal losses in the European session, indicating that the risk-on impulse is fading away. The US Dollar Index (DXY) resumes upside as the impact of upbeat economic data from the Chinese economy starts losing its appeal.

China’s annual Industrial Production rose by 4.5% and Retail Sales expanded by 4.6%, outperformed expectations. However, one-time robust economic data is insufficient to warrant economic growth in an economy.

The US Dollar Index prepares for a fresh upside despite the Federal Reserve (Fed) being expected to keep interest rates unchanged at 5.25-5.50% in its monetary policy scheduled for September 20. However, Fed policymakers are expected to keep doors open for further policy tightening as inflation in excess of the desired rate of 2% would be the hardest nut to crack.

Meanwhile, oil prices dropped after failing to continue the three-day winning streak. However, the broader term is still bullish as OPEC sees demand for oil rising on expectations of global recovery. It is worth noting that Canada is the leading exporter of oil to the United States and lower oil prices impact the Canadian Dollar.

USD/CAD

Overview
Today last price 1.3543
Today Daily Change 0.0035
Today Daily Change % 0.26
Today daily open 1.3508
 
Trends
Daily SMA20 1.3576
Daily SMA50 1.3409
Daily SMA100 1.3403
Daily SMA200 1.3466
 
Levels
Previous Daily High 1.3557
Previous Daily Low 1.3493
Previous Weekly High 1.3694
Previous Weekly Low 1.3576
Previous Monthly High 1.364
Previous Monthly Low 1.3184
Daily Fibonacci 38.2% 1.3518
Daily Fibonacci 61.8% 1.3532
Daily Pivot Point S1 1.3482
Daily Pivot Point S2 1.3456
Daily Pivot Point S3 1.3419
Daily Pivot Point R1 1.3546
Daily Pivot Point R2 1.3583
Daily Pivot Point R3 1.3609

 

 

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