USD/CAD rises above 1.3450 despite broad USD weakness
- USD/CAD gained traction and climbed above 1.3450 in the American session.
- The US Dollar Index stays deep in negative territory below 102.00 after weak US data.
- WTI declined to $80 area following earlier advance.
Following Monday's sharp decline, USD/CAD stayed relatively quiet during the European trading hours on Tuesday. After retreating toward 1.3400 in the early American session, however, the pair regained its traction and turned positive on the day above 1.3450.
The data from the US revealed on Tuesday that Factory Orders declined at a faster pace than expected in February. More importantly, the US Bureau of Labor Statistics reported that job openings on the last day of February dropped to 9.9 million from 10.5 million in January, pointing to softening in labor market conditions. In turn, the US Dollar (USD) came under heavy selling pressure and the US Dollar Index fell to its lowest level since early February below 101.50.
Despite the persistent USD weakness, USD/CAD managed to reverse its direction with the commodity-sensitive loonie struggling to find demand amid retreating crude oil prices.
The barrel of West Texas Intermediate (WTI), which touched its highest level in over two months near $82, was last seen trading in negative territory at around $80.00. Later in the session, the American Petroleum Institute's Weekly Crude Oil Stock report will be watched closely by market participants.
Meanwhile, Wall Street's main indexes stretch lower after a mixed opening, helping the USD stay resilient against the CAD.
Technical levels to consider
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
