- The Canadian Dollar remains well supported by Wednesday’s BoC statement.
- The USD fails to gain respite from upbeat ADP report/surging US bond yields.
- Positive Oil prices further weighed ahead of US ISM non-manufacturing PMI.
The USD/CAD pair traded with a mild negative bias through the early North-American session on Thursday, albeit managed to recover few pips from lows post-US ADP report.
The pair added to the previous session’s BoC-led heavy losses and remained under some selling pressure for the second consecutive session on Thursday, extending this week’s retracement sharp slide from 2-1/2 month tops.
The pair momentarily slipped below the 1.3200 handle, hitting over three-week lows, but managed to find some support around 50-day SMA, though a combination of negative factors held bullish traders on the back-foot.
Upbeat ADP report fails to lift the USD
The US Dollar failed to benefit from a strong intraday upsurge in the US Treasury bond yields and also shrugged off better-than-expected US ADP report, showing that private-sector employers added 195K jobs in August.
Meanwhile, a positive trading sentiment around Crude Oil prices continued underpinning the commodity-linked currency – Loonie, which remained well supported by Wednesday’s not at all dovish BoC policy statement.
Moving ahead, Thursday’s US economic docket also features the release of ISM non-manufacturing PMI, which might influence the USD price dynamics and collaborate towards producing some short-term opportunities.
Technical levels to watch
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