- USD/CAD loses momentum near 1.3320.
- WTI stays on the downside just above $55.00.
- BoC expected to remain on hold on Wednesday.
The Canadian Dollar remains well on the defensive on Tuesday and it has lifted USD/CAD to fresh multi-day highs around 1.3320, where some tough resistance emerged.
USD/CAD weak on trade, focused on BoC
Spot clinches fresh tops on Tuesday following the increasing selling bias in the Canadian Dollar, all in response to comments from President Trump noting the possibility that any trade deal with China could be postponed to any time after the US elections next year.
Also adding to CAD-weakness, prices of the barrel of the American benchmark for the sweet light crude oil are reversing Monday’s gains and are now accelerating the downside in sub-$56.00 levels ahead of the API and EIA reports on US crude oil supplies due later on Tuesday and on Wednesday, respectively.
Further out, the Bank of Canada is expected to leave the benchmark rate unchanged at 1.75% at its meeting on Wednesday.
Back to the US, the ISM Non-Manufacturing, the ADP report and November’s Non-farm Payrolls are seen driving the mood around the buck in the rest of the week.
USD/CAD significant levels
As of writing the pair is gaining 0.06% at 1.3315 and faces the initial hurdle at 1.3327 (monthly high Nov.20) followed by 1.3347 (monthly high Oct.3) and finally 1.3382 (monthly high Sep.3). On the other hand, a breach of 1.3278 (200-day SMA) would aim for 1.3252 (21-day SMA) and then 1.3190 (low Nov.19).
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