USD/CAD slides to 1.2600 area as oil gains more than 3%
- USD/CAD fell to a fresh weekly low below 1.2600 on Tuesday.
- Oil rally continues to help CAD gather strength.
- US Dollar Index stays quiet around 93.00 in the American session.
The USD/CAD pair extended its slide during the American trading hours on Tuesday and touched its lowest level since August 17 at 1.2576. As of writing, the pair was trading at 1.2600, losing 0.35% on a daily basis.
WTI advances beyond $67
The decisive rally witnessed in crude oil prices since the beginning of the week is providing a boost to the commodity-related loonie. The barrel of West Texas Intermediate, which gained nearly 6% on the back of improving market sentiment on Monday, is currently rising 3.15% on the day at $67.60.
On the other hand, the US Dollar Index (DXY) is fluctuating in a relatively narrow range, allowing the CAD's valuation to impact USD/CAD's movements.
Earlier in the day, the data from the US revealed that New Home Sales increased by 1% on a monthly basis in July. This reading came in better than the market expectation for a decrease of 2.7% but failed to help the greenback find demand. At the moment, the DXY is virtually unchanged on the day at 92.95.
There won't be any high-tier data releases featured in the Canadian economic docket on Wednesday. July Durable Goods Orders from the US will be looked upon for fresh catalysts.
Technical levels to watch for
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.
