USD/CAD rising back into 1.2650 as risk-off markets pick up the Greenback

• Risk aversion  kicks off the new trading year as economic fears resume.
• The post-holiday markets, surprised by negative China data, are in retreat mode to open January’s trading.

USD/CAD greets the new trading year for 2019 with a fresh round of risk-off trading, sending investors back-pedaling into the US Dollar and sending the Dollar-Loonie pairing back into recent highs as the same problems that plagued markets into the bitter end of 2018 have followed through into 2019.

Crude markets remain fully deflated, and the Loonie finds itself without a solid floor to stand on as the CAD struggles to maintain balance against the steady-marching Greenback. Energies markets have been beaten into submission on crude barrel prices, and American oil barrels via WTI are still trading into the rock-bottom price of 45.00/barrel.

US economic data is thin for Wednesday, but broad-market sentiment is seeing pickup in the USD almost entirely across the board, and USD/CAD is pinned into near-term highs as buyers look for a break into 1.3680.

USD/CAD Technical Levels