USD/CAD finds support near 1.3300 despite crude oil recovery

• Crude oil prices recover in American session on Monday.
• Wholesale Sales in Canada rose more than expected in September.
• US Dollar Index fluctuates in tight range  above 98.

The USD/CAD pair came under modest bearish pressure during the American trading hours and retreated to 1.3300 area before finding support there. As of writing, the pair was trading at 1.3315, adding 0.12% on a daily basis.

Earlier in the day, the data published by Statistics Canada showed Wholesale Sales in Canada increased by 1% following August’s decline of 1.2% and surpassed the market expectation of 0.4% to help the loonie stay resilient against the greenback.

Eyes on crude oil ahead of OPEC meeting

Additionally, after staging a technical correction during the first half of the day following last week’s rally, crude oil prices gained traction in the last hours with the barrel of West Texas Intermediate turning flat on the day near $58 and making it difficult for the pair to continue to edge lower.  

Markets will be paying close attention to any fresh developments surrounding the OPEC+ output cuts ahead of December meeting and the pair is likely to react to heightened volatility in WTI. According to the CME Group’s OPEC Watch Tool, markets are pricing a 75% possibility of the group maintaining its output cuts.

On the other hand, the greenback seems to be preserving its strength against its major rivals on Monday with the US Dollar Indexregistering small daily gains near the 98.30 mark. The data published by the Federal Reserve Bank of Dallas showed that the business activity in Texas’ manufacturing sector declined at a softer pace than expected to help the index stay in the upper half of its daily range.

Technical levels to watch for