- Labour productivity in Canada increases by 0.3% in Q3.
- WTI drops below $54 after touching a new 12-day high at $54.55.
- US Dollar Index stays in the negative territory near mid-96s.
The USD/CAD pair slumped to a daily low around 1.3160 earlier in the day but started to retrace its fall in the last hour as the commodity-sensitive loonie came under a modest pressure with crude oil recovery losing momentum. As of writing, the pair was virtually unchanged on a daily basis at 1.3195.
Easing trade concerns and hopes of OPEC+ introducing additional output cuts in 2019 allowed crude oil to preserve its bullish momentum for the second straight day. After closing the previous day with a more-than-5% gain, the barrel of West Texas Intermediate touched its highest level in more than 10 days at $54.55. However, with markets turning their attention to today’s API report, the WTI staged a technical correction and was last seen trading at $53.60, adding around 1% on the day.
The broad-based USD weakness amid the increasing demand for European currencies on Tuesday forced the pair to extend its decline as well. Ahead of the ISM-NY Business Conditions Index from the U.S., the DXY was losing 0.35% on the day at 96.60.
Meanwhile, the data from Canada on Tuesday revealed that labour productivity increased by 0.3% in the third quarter following the second quarter’s 0.7% reading.
Technical levels to consider
The initial support for the pair aligns at 1.3140 (50-DMA) ahead of 1.3075 (100-DMA) and 1.3035 (200-DMA). On the upside, resistances are located at 1.3200 (psychological level), 1.3265 (Dec. 3 high) and 1.3330 (Nov. 30 high).
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