- Comments from the US Treasury Secretary, White House Adviser and WTI pullback keep the USD/CAD pair volatile.
- The US business groups come forward to show that they’re having a tough time due to the trade war.
- An active economic calendar, trade/political news will direct near-term sentiment.
With mixed signals concerning the US-China trade talks from the US and a WTI pullback, USD/CAD takes the rounds to 1.3300 amid Asian session on Thursday.
The Loonie pair previously rose as the US Dollar (USD) registered across the board strength on the back of risk recovery amid the absence of major data and a lack of major negatives concerning a trade deal with China.
However, traders seem confused between the mixed signals from the US monetary policymakers, Treasury Secretary and the White House Adviser. While the San Francisco Fed’s Daly spread a bit cautious statements speaking at the forum in New Zealand, Dallas Fed Chier Robert Kaplan guards the central bank’s decision from politics.
Further, Treasury Secretary Steve Mnuchin turned down any near-term chances of the US intervening in currency markets to safeguard the US Dollar (USD) while supporting the trade talks with China despite being unclear of September deadline. Additionally, the White House Adviser Peter Navarro exerted additional pressure on the Fed to cut rates whereas news was also making rounds that the US business groups are appealing President Donald Trump to scale back Chinese tariffs as they are witnessing worst time due to that.
It should also be noted that WTI pullback, mainly due to renewed uncertainty surrounding trade, offers additional weakness to the USD/CAD pair.
Investors will now keep an eye over a bit heavy economic calendar including Canadian Currency Account, and the US second estimate of Q2 2019 Gross Domestic Product (GDP), Personal Consumer Expenditure Prices and Pending Home Sales data.
Technical Analysis
While 200-day exponential moving average (EMA) around 1.3247 offers near-term key support, prices need to cross 1.3345/50 area, including early-month tops, to aim a move beyond 1.3400 round-figure.
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