USD/CAD tests fresh lows in the 1.3080 ahead of BoC

The greenback stays on the defensive vs. its Canadian neighbour on Wednesday, dragging USD/CAD to daily lows in the 1.3090/80 band.

USD/CAD weaker ahead of BoC

Spot has accelerated its daily correction lower today, re-visiting sub-1.3100 levels backed by a persistent selling pressure hitting the greenback and the better tone sustaining crude oil prices.

In fact, the West Texas Intermediate is advancing more than 1% to the $51.00 mark per barrel, lending extra legs to CAD. Prices for the WTI remain supported by yesterday’s unexpected draw in US crude stockpiles reported by the API and ahead of the DoE report due later in the NA session.

Later in the day, the BoC is expected to leave its monetary status quo unchanged at today’s meeting, while the attention will shift to the subsequent press conference by Governor S.Poloz.

Back to the US, MBA’s Mortgage Approvals is to be published followed by Building Permits, Housing Starts and the Fed’s Beige Book.

Additionally, speeches by San Francisco Fed J.Williams (2018 voter, neutral), Philly Fed P.Harker (2017 voter, hawkish) and Dallas Fed R.Kaplan (2017 voter, neutral) should keep the attention around the buck.

USD/CAD significant levels

As of writing the pair is losing 0.22% at 1.3084 and a breakdown of 1.3050 (low Oct.18) would open the door to 1.3026 (100-day sma) and then 1.2996 (low Sep.22). On the other hand, the initial hurdle aligns at 1.3172 (200-day sma) followed by 1.3314 (high Oct.7) and finally 1.3575 (50% Fibo of the 2016 drop).