USD/CAD stuck in a range below 1.30 handle

Haresh Menghani FXStreet

• Subdued USD demand fails to assist build on overnight rebound.
• Weaker oil prices undermine Loonie and helped limit further slide.

The USD/CAD pair struggled to build on overnight modest rebound from multi-day lows and remained capped below the key 1.30 psychological mark.

The pair extended last week's rejection slide from 100-day SMA and was kept losing ground for the third consecutive session on Monday. A combination of factors exerted some heavy downward pressure and dragged the pair to an intraday low level of 1.2955.

The already weaker US Dollar was further weighed down by the disappointing release of US monthly retail sales data, while the Bank of Canada Business Outlook survey report fueled rate hike expectations and underpinned the Canadian Dollar.

The pair, however, managed to find some support at lower levels and managed to rebound around 35-pips from daily lows, albeit lacked any strong follow-through amid a subdued USD demand.

Meanwhile, a weaker tone around crude oil prices, which tend to dent demand for the commodity-linked Loonie, extended some support and might now help limit any immediate sharp downside, at least for the time being.

Hence, it would be prudent to wait for a sustained break in either direction before positioning for the pair's intraday momentum amid relatively thin economic docket, featuring the second-tier releases of Industrial Production, Capacity Utilization Rate and JOLTS Job Openings data from the US.

Technical levels to watch

The 1.2955-50 zone might continue to protect the immediate downside, below which the pair is likely to accelerate the fall towards testing the very important 200-day SMA support near the 1.2900-1.2895 region. On the flip side, momentum beyond the 1.30 handle is likely to confront fresh supply near the 1.3040-50 region and is followed by the 100-DMA barrier, currently near the 1.3065 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial 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 returns below $4,200 after a short-lived recovery

Gold tested $4,220 early in the American session after softer-than-expected US inflation figures. Encouraging US data weighed on the odds of a Federal Reserve rate hike in October, as employment and growth data beat expectations. Still, the precious metal was unable to retain its momentum and trades flat around $4,180

Crypto Today: Bitcoin holds $83K as Ethereum remains below $2,700 and XRP consolidates

Bitcoin trades lethargically on Wednesday, with bulls battling to defend the immediate $83,000 level as immediate support. Ethereum trades in tandem with Bitcoin, holding below key levels of $2,700 on the upside and $2,600 on the downside. Ripple, meanwhile, hovers near $1.50,

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025, but a fresh inflation shock in the Eurozone could give the Euro an unexpected lifeline. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025, but a fresh inflation shock in the Eurozone could give the Euro (EUR) an unexpected lifeline. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082.