- CAD jumped across the board after Wilkins mentioned BoC discussed accelerate rate hikes.
- USD/CAD lost 70 pips in a few minutes, moving significantly away from 6-week highs.
The USD/CAD pair fell from 1.3200 to 1.3125, hitting a fresh daily low. The move was triggered by comments from Bank of Canada, Senior Deputy Governor Carolyn Wilkins. She commented that during the last meeting BoC debated about whether to accelerate potential rate hikes and then added that when the economy is running near capacity for a year, rates typically rise.
The loonie jumped across the board and turned positive for the day. Against the US dollar, it erased losses and USD/CAD is now headed toward the second daily loss in a row. Earlier today the pair reached at 1.3225, the highest level since July 20 but if quickly pulled back to the 1.3200-1.3150 range that has been broke to the downside with the recent move. Today’s slide could signal a potential interim peak.
USD/CAD Levels to watch
Volatility remains highs across loonie’s crosses. USD/CAD was trading slightly below 1.3150. Ahead of the Asian session, support levels might be located at 1.3125 (daily low), 1.3100/05 (Aug 24 high) and 1.3080. On the upside, resistance might now be seen at 1.3160/65, 1.3200 and 1.3225 (Sep 6 high).
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