USD/CAD retreats to 1.3550 area, recovers on oil selloff

  • USD/CAD fell to 1.3550 area during the American session.
  • Falling crude oil prices makes it difficult for loonie to preserve its strength.
  • US Dollar Index slumps toward 97.00 after upbeat data.

The USD/CAD climbed to 1.3600 on broad-based USD strength during the first half of the day but lost its traction during the American session. After dropping to a session low of 1.3550, however, the pair staged a rebound and was last seen trading flat on the day at 1.3573.

Upbeat US data weigh on greenback

The data from the US on Wednesday showed that the business activity in the manufacturing sector expanded in June with the ISM Manufacturing PMI advancing to 52.6 from 43.1 in May. Moreover, the ADP Employment Changed arrived at +2.36 million. Although this reading came in lower than the market expectation of +3 million, May's print got revised up to +3.06 million from -2.76 million and provided a boost to market sentiment.

The USD failed to preserve its strength amid risk-on flows and the US Dollar Index (DXY) slumped toward 97.00. As of writing, the DXY was down 0.32% on the day at 97.08.

On the other hand, despite the weekly data published by the US Energy Information Administration showed that crude oil stocks decreased by 7.2 million barrels, the West Texas Intermediate (WTI) struggled to stage a rebound. With the WTI posting daily losses around mid-$39s, the commodity-sensitive CAD is having a hard time finding demand.

Later in the day, the FOMC will release the minutes of its June meeting.

Technical levels to watch for


Today last price 1.3566
Today Daily Change -0.0009
Today Daily Change % -0.07
Today daily open 1.3575
Daily SMA20 1.3551
Daily SMA50 1.3795
Daily SMA100 1.3802
Daily SMA200 1.3491
Previous Daily High 1.37
Previous Daily Low 1.357
Previous Weekly High 1.3716
Previous Weekly Low 1.3486
Previous Monthly High 1.3802
Previous Monthly Low 1.3316
Daily Fibonacci 38.2% 1.362
Daily Fibonacci 61.8% 1.365
Daily Pivot Point S1 1.3531
Daily Pivot Point S2 1.3486
Daily Pivot Point S3 1.3401
Daily Pivot Point R1 1.366
Daily Pivot Point R2 1.3744
Daily Pivot Point R3 1.3789



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