USD/CAD trades with modest intraday losses above 1.3500 amid the recovery of oil prices


  • USD/CAD edges lower to 1.3510 on Wednesday. 
  • A rally in oil prices benefits the commodity-linked Canadian Dollar (CAD).  
  • US CB Consumer Confidence (Sep) rose by 103 vs. 108.7 prior, a four-month low.

The USD/CAD pair trades with a modest loss above the 1.3500 mark during the early Asian trading hours on Wednesday. The hawkish stance from the Federal Reserve (Fed) and risk aversion boost the US Dollar (USD) across the board. Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, holds above 106.20, the highest level since November. The pair currently trades around 1.3510, down 0.05% on the day. 

In the absence of economic data released from the Canadian docket on Wednesday, the USD/CAD pair remains at the mercy of USD price dynamics. However, the rebound in oil prices might cap the upside of USD/CAD and support the commodity-linked Loonie as the country is the leading oil exporter to the US.

On Tuesday, the economic data showed that the US Conference Board (CB) Consumer Confidence for September rose by 103.0 from 108.7 in August. The figures dropped to a four-month low and indicated the impact of higher interest rates and concerns about the political environment. Meanwhile, the Building Permits came in at 1.541M in August from the previous reading of 1.443M. The House Price Index for July rose to 0.8% MoM from 0.4% in the previous reading, above the market consensus of 0.5%. New Home Sales declined -8.7% in August from 8% rise in July.

The Federal Reserve (Fed) decided to hold interest rate unchanged in the 5.25% to 5.50% range in its September meeting last week. In terms of macroeconomic predictions, most members still expect further rate rises later this year. Minneapolis Federal Reserve Bank President, Neel Kashkari stated on Tuesday that he is one of the Fed policymakers who sees one more rate hike this year. He added that US rates probably have to go a little bit higher and be held there for longer, to cool things off. This, in turn, boosts the USD against the Canadian Dollar (CAD). 

Looking ahead, market players await the US Durable Goods Orders report will be released on Wednesday. The Core Personal Consumption Expenditure (PCE) Price Index, the Fed's preferred measure of consumer inflation on Friday will be in the spotlight with an expected drop from 4.2% to 3.9%. Traders will take cues from the data and find trading opportunities around the USD/CAD pair. 

 

USD/CAD

Overview
Today last price 1.351
Today Daily Change -0.0007
Today Daily Change % -0.05
Today daily open 1.3517
 
Trends
Daily SMA20 1.3543
Daily SMA50 1.3453
Daily SMA100 1.3402
Daily SMA200 1.346
 
Levels
Previous Daily High 1.3528
Previous Daily Low 1.3449
Previous Weekly High 1.3528
Previous Weekly Low 1.3379
Previous Monthly High 1.364
Previous Monthly Low 1.3184
Daily Fibonacci 38.2% 1.3498
Daily Fibonacci 61.8% 1.3479
Daily Pivot Point S1 1.3468
Daily Pivot Point S2 1.3419
Daily Pivot Point S3 1.3389
Daily Pivot Point R1 1.3547
Daily Pivot Point R2 1.3577
Daily Pivot Point R3 1.3626

 

 

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