USD/CAD rises in tandem with DXY

Dhwani Mehta FXStreet

The USD/CAD pair ignores the oil-price strength and rises sharply in the Asian session, lock-stepping in with the US dollar.

USD/CAD targets 50-DMA at 1.3199?

Currently, the USD/CAD pair advances +0.27% to 1.3141, having posted daily tops at 1.3149 last hour. The major is seen consolidating the Asian recovery well beyond 1.31 handle, largely in response to pick-up in US dollar demand across the board. The USD index rises +0.28% to 101.20, extending gains for the third straight session.

Markets prefer to hold the US currency ahead of the Fedspeaks and FOMC minutes scheduled this week, while greenback also recovers grounds on increased expectations surrounding Trump’s tax policies, especially the border tax.

Focus now remains on the USD dynamics, while sentiment around the black gold will also play a key role amid a lack of significant economic releases slated today from both the North American nations.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3150 (psychological levels) and 1.3199 (50-DMA) and from there to 1.3215 (Feb 15 high). To the downside, immediate support might be located at 1.3100 (daily low) and below that at 1.3079 (daily S2) and at 1.3057 (Feb 17 low).

1. R3 1.3121
2. R2 1.3112
3. R1 1.3101
PP 1.3092
1. S1 1.3080
2. S2 1.3071
3. S3 1.3060

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD sits at two-month lows near 0.6950 after Australian CPI data

AUD/USD is sitting at two-month lows near 0.6950 in the Asian session on Wednesday, as below-expectations August Australian underlying CPI data pours cold water on expectations for further RBA interest rate hikes. Chinese PMI data also fail to inspire the Australian Dollar, despite a pause in the US Dollar advance.

USD/JPY stays weak below 157.00 amid Japanese intervention risks

USD/JPY keeps losses below 157.00 in the Asian session on Wednesday, as hawkish BoJ expectations, along with intervention risks, underpin the Japanese Yen, countering dismal domestic factory output and retail sales data. Meanwhile, a broad US Dollar retreat also collaborates to the pair's downside.

Gold flat lines below $4,200, as focus shifts to US ADP and PCE

Gold extends its consolidative price move in the European session, trading near the $4,200 mark. Falling US bond yields drag the US Dollar away from the two-month high, touched on Tuesday, and act as a tailwind for the commodity. However, hawkish US Federal Reserve expectations cap the upside as traders await important US macro data before placing fresh directional bets on the non-yielding bullion.

Bitcoin consolidates below $85,000 amid rising US Treasury yields, derivatives deleveraging

Bitcoin consolidates near $83,000 at the time of writing on Wednesday after bulls failed to close above the key $85,000 level earlier this week. The Crypto King's investors remain cautious amid rising US Treasury yields and several key macroeconomic data releases due this week.

US core PCE inflation set to rise in August, pressuring the Federal Reserve

The United States Bureau of Economic Analysis will publish the Personal Consumption Expenditures Price Index data for August on Wednesday at 12:30 GMT. Market participants closely watch the PCE Price Index because it is the Federal Reserve’s preferred measure of inflation and could influence its policy outlook.

Silver is more volatile than Gold ahead of PCE and NFP. This chart shows the positioning gap

The market’s attention is focused on American data this week, but there’s something only those with a trained eye may be looking at: Gold and Silver positioning gap. Financial markets are moving on fears, mostly related to persistently high energy prices driven by the Middle East war. Sure, the US Dollar (USD) is strong, but at what cost?