• The prevalent USD bullish sentiment fails to provide any meaningful boost.
• A goodish pickup in oil prices underpin Loonie and exert some selling pressure.
• Today’s key focus will be on the latest US consumer inflation figures for Nov.
The USD held on the defensive against its Canadian counterpart, with the USD/CAD pair trading with a slightly negative bias for the second consecutive session.
The pair continued with its struggled to sustain/build on the momentum further beyond the 1.3400 handle despite the prevailing bullish sentiment surrounding the US Dollar.
The greenback stood tall near one-month tops and was now supported by rebounding US Treasury bond yields, though failed to provide any meaningful bullish impetus to the major.
A goodish rebound in crude oil prices underpinned the commodity-linked currency – Loonie and seemed to be the only factor exerting some downward pressure through the early European session on Wednesday.
In fact, oil prices rallied over 1.5% on Wednesday amid news of disruptions to Libyan oil exports and a production loss of 315,000 bpd from the El Sharara oilfield after it was seized by a local militia group.
Currently hovering around the 1.3380-75 region, market participants now look forward to the latest US consumer inflation figures, due later during the early North-American session, for some fresh impetus.
Technical levels to watch
Immediate support is pegged near the 1.3355-50 region, below which the pair is likely to accelerate the fall further towards challenging the 1.3300 handle. On the flip side, the 1.3400 handle remains an immediate strong hurdle, which if cleared might assist the pair to aim back towards retesting 18-month tops, around the 1.3445 area.