- The USD held on to its modest daily gains despite falling US bond yields/softer ADP report.
- A sharp intraday slide in Crude Oil prices undermined the Loonie and remained supportive.
The USD/CAD pair continued gaining positive traction through the early North-American session and has now moved back closer to the previous session’s swing high.
After an initial dip to the 1.3200 neighbourhood – over two-week lows – the pair managed to regain strong positive traction on Wednesday and the initial leg of the intraday move up was supported by some renewed US Dollar buying interest.
Modest USD strength/sliding Oil prices supportive
The USD bulls seemed rather unaffected by a sharp intraday slide in the US Treasury bond yields, primarily led by the global flight to safety amid fears about slowing economic growth, and a slight disappointment from the latest ADP report.
Data released on Wednesday showed that the US private-sector employers added 135K jobs in September, down from the previous month’s downwardly revised reading of 157K (195K reported previously) and short of 140K consensus estimates.
Meanwhile, a sudden fall in Crude Oil prices, now down nearly 2% from daily tops, further weighed on the commodity-linked currency – Loonie and remained supportive of the pair’s strong intraday bullish momentum on Wednesday.
It, however, remains to be seen if the ongoing momentum is strong enough to continue driving the pair higher or once again fizzles out near the very important 200-day SMA strong barrier – around the 1.3300-10 region.
Market participants now look forward to the release of weekly EIA report on US Crude Oil inventories, which might produce some meaningful trading opportunities, though is unlikely to be a major game-changer for the major.
Technical levels to watch
Share
