USD/CAD tests 1.32 handle pressured by rising crude oil prices on trade headlines


  • WTI rises to best level in nearly two weeks on latest trade headlines.
  • USTR announces decision to delay tariffs on some Chinese imports.
  • US Dollar Index pushes higher, limiting pair's losses.

The USD/CAD pair came under strong bearish pressure as the commodity-related Loonie gathered strength on the back of surging crude oil prices. After slumping to a weekly low of 1.3184, however, the pair reversed its course and was last seen trading at 1.3228, still down 0.08% on the day.

The US Trade Representative's office today published a list of Chinese products that will be exempt from the 10% additional tariffs until December 15 in a bid to work toward a trade deal with China ahead of next months high-level talks in Washington.

With the concerns over a dismal global oil demand outlook easing on this development, the barrel of West Texas Intermediate rose sharply and was last up 3.7% on the day at $56.77, ramping up the demand for oil exporter Canada's currency.

Rising T-bond yields support USD

However, the improved market sentiment also caused the US Treasury bond yields to stage a decisive rally and helped the Greenback stay strong against its major rivals. The US Dollar Index, which spent a large portion of the day below 97.50, advanced to 97.80 and didn't allow the pair to push lower.

Meanwhile, the only data from the US today showed that inflation, as measured by the core Consumer Price Index (CPI), ticked up to 2.2% to surpass the market expectation of 2.1%.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3232
Today Daily Change -0.0008
Today Daily Change % -0.06
Today daily open 1.324
 
Trends
Daily SMA20 1.3168
Daily SMA50 1.319
Daily SMA100 1.3304
Daily SMA200 1.331
Levels
Previous Daily High 1.3251
Previous Daily Low 1.3203
Previous Weekly High 1.3345
Previous Weekly Low 1.3178
Previous Monthly High 1.3215
Previous Monthly Low 1.3016
Daily Fibonacci 38.2% 1.3232
Daily Fibonacci 61.8% 1.3221
Daily Pivot Point S1 1.3212
Daily Pivot Point S2 1.3184
Daily Pivot Point S3 1.3164
Daily Pivot Point R1 1.326
Daily Pivot Point R2 1.3279
Daily Pivot Point R3 1.3307

 

 

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