- WTI advances to highest level since early November.
- US Dollar Index stays in daily channel above 97.
- Comin up: Manufacturing PMI figures for the U.S. and Canada.
After losing nearly 100 pips on Friday, the USD/CAD pair staged a modest rebound on Monday as the commodity-sensitive loonie gathered demand amid rising crude oil prices. At the moment, the pair, which touched a session high of 1.3370 in the last hour, was clinging to small gains at 1.3358.
Upbeat data from China at the start of the week eased concerns over the economic slowdown in the world’s second-biggest economy and its potential negative impact on the oil demand to help crude oil gain traction. The barrel of West Texas Intermediate on Monday reached its highest level since the first week of November at $60.90 and was last seen trading at $60.80, adding 1.15% on a daily basis.
Meanwhile, the greenback, which struggled to extend its rally following Friday’s disappointing PCE price index data, is staying relatively calm ahead of the critical data from the U.S. Although the data published by the Census Bureau revealed that retail sales in the U.S. declined by 0.2% in February, the DXY didn’t show a significant reaction and was last losing 0.12% on a daily basis at 97.10.
The IHS Markit will be releasing the final Manufacturing PMI data for both the United States and Canada later in the session. Additionally, the ISM will publish its own Manufacturing PMI for the U.S. as well. In the NA evening, Bank of Canada Governor Poloz’s speech will be watched closely by the participants as well.
Technical levels to consider
The pair could face the initial resistance at 1.3370 (daily high) ahead of 1.3440 (Mar. 29 high) and 1.3500 (psychological level). On the downside, supports are located at 1.3340 (daily low), 1.3290 (50-DMA) and 1.3200 (200-DMA).
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