“¢ The USD remains well bid after better-than-expected weekly jobless claims.
“¢ Subdued oil price-action does little to influence commodity-linked Loonie.
“¢ Focus remains on central bankers’ speeches at Jackson Hole Symposium.
The USD/CAD pair held on to is positive tone through the early North-American session and refreshed session tops, just above mid-1.3000s in the last hour.
Resurgent US Dollar demand helped ease the recent bearish pressure surrounding the major and attract decent buying interest ahead of 100-day SMA support, near the 1.2985 region.
The latest FOMC meeting minutes, released on Wednesday, reaffirmed prospects for a September Fed rate hike, which coupled with renewed US-China trade tensions prompted some safe-haven flows towards the greenback and assisted the pair to snap four consecutive days of losing streak.
The pair rallied back to 1.3050-60 immediate horizontal resistance and the up-move remained supported by today’s release of the US initial weekly jobless claims, coming in to show a decline of 2,000 to 210K for the week ended August 18.
Meanwhile, a subdued action around crude oil prices did little to influence the commodity-linked currency – Loonie, with the USD price dynamics turning out to be an exclusive driver of the pair’s momentum on Thursday.
Moving ahead, investors’ key focus will remain on speeches by the Fed Chair Jerome Powell and BoC Governor Stephen Poloz at the annual Economic Policy Symposium, in Jackson Hole, which should help determine the pair’s next leg of directional move.
Technical levels to watch
A follow-through buying has the potential to continue lifting the pair further towards reclaiming the 1.3100 handle en-route 1.3135-40 supply zone. On the flip side, the 1.3035-30 region, followed by the key 1.30 psychological mark now becomes immediate supports to defend, which if broken might turn the pair vulnerable to extend its near-term downward trajectory.
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