USD/CAD extends slide toward 1.33 handle as WTI pushes above $58

• WTI rises to 4-month highs above $58 after EIA report.
• Mixed data from the U.S.  weighs on the greenback.
• US Dollar Index continues to edge lower for the fourth straight day.

The USD/CAD pair extended its daily slide to a fresh weekly low 1.3308 and was last seen trading at 1.3314, losing 0.3% on a daily basis.

The combination of the broad-based selling pressure surrounding the greenback and a stronger loonie on the back of rising crude oil prices today became the primary catalyst behind the pair’s slide.  

After the EIA in its weekly report announced that the crude oil stocks in the U.S. declined by 3.9 million barrels in the week ending March 8 provided a boost to oil and helped the commodity-sensitive loonie outperform its rivals. As of writing, the barrel of West Texas Intermediate was trading at its highest level since mid-November at $58.38, adding 2.3% on the day.

On the other hand, the greenback struggled to gain traction after the Producer Price Index in February eased to 1.9% on a yearly basis from 2%. Although durable goods orders rose 0.4% in January to beat the market expectation, the US Dollar Index failed to rebound above 97 and slumped to its lowest level in a week at 96.65. At the moment, the index is losing 0.3% at 96.70. Additionally, after rising nearly 1% earlier in the day, the 10-year T-bond yield erased the majority of its daily gains to further hurt the demand for the buck.

Technical levels to consider