- USD/CAD is struggling to find direction on Tuesday.
- US Dollar Index remains on the back foot below 90.00.
- Falling crude oil prices limit commodity-sensitive CAD’s gains.
The USD/CAD pair is moving sideways in a very tight range on Tuesday. As of writing, the pair was virtually unchanged on a daily basis at 1.2040.
Focus shifts to US data
Although the greenback continues to have a difficult time finding demand, the poor performance of crude oil is not allowing CAD to outperform its American counterpart.
With the market mood remaining upbeat for the second straight day, the US Dollar Index is losing 0.22% at 89.65. Later in the session, the Conference Board’s Consumer Confidence Index and New Home Sales data from the US will be looked upon for fresh impetus.
Meanwhile, S&P Futures and Nasdaq Futures are up 0.3% and 0.45%, respectively, suggesting that risk flows are likely to remain in control of financial markets in the second half of the day.
On the other hand, the barrel of West Texas Intermediate (WTI) is currently down 0.6% on the day at $65.60, limiting CAD’s potential gains for the time being. There won’t be any macroeconomic data releases featured in the Canadian economic docket and fluctuations in oil prices could continue to impact the CAD’s valuation. The American Petroleum Institute (API) will publish its Weekly Crude Oil Stock data at 2030 GMT.
Technical levels to watch for
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