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  • WTI trades in tight range above $60 on Tuesday.
  • US Dollar Index posts modest daily gains near 97.80.
  • Coming up: Richmond Fed Manufacturing Index and weekly API data.

After moving sideways near 1.3150 for the majority of the day, the USD/CAD pair gained traction in the last hour and was last seen trading at 1.3164, adding 0.16% on a daily basis.

CAD weakened on disappointing GDP data

The data published by Statistics Canada on Monday showed that the Canadian real Gross Domestic Product (GDP) contracted by 0.1% on a monthly basis in October and the pair rose to a daily high of 1.3177 with the initial market reaction but closed the day in virtually unchanged 1.3147 as the thin liquidity conditions ahead of Christmas break didn’t allow the pair to make a decisive move in either direction.  

Later in the day, the Federal Reserve Bank of Richmond’s Manufacturing Survey will be looked upon for fresh impetus but the pair is unlikely to react to the data. Ahead of this data, the US Dollar Index is up 0.12% on the day at 97.78, helping the pair to cling to its daily gains. There won’t be any macroeconomic data releases from Canada in the remainder of the week.

Additionally, the American Petroleum Institue will release its weekly crude oil stock report in the post-settlement trading hours. Ahead of this data, the barrel of West Texas Intermediate is staying flat on the day at $60.55.  

Technical levels to watch for