- USD/CAD rebounds modestly after FOMC minutes.
- Loonie limited by crude oil slide; WTI dropped further falling under $73.00.
The USD/CAD pair remains sideways, moving in range after the release of the FOMC minutes. The Fed’s document contained no major surprises and had a limited impact on the US dollar and bonds.
USD/CAD rose from 1.3125 to 1.3152 after thee minutes and also following another leg lower in crude oil. The WTI fell to $72.65 a barrel, the lowest in a week after a surprise increase in EIA inventories and a WSJ report signaling that preparations for public listing of Aramco have stalled.
Technical outlook
USD/CAD is moving sideways around 1.3140. The bias is tilted slightly to the downside with price holding below the 20-day moving average that stands at 1.3175.
Ahead of the Asian session, USD/CAD continues to move between 1.3160 and 1.3110. A consolidation above 1.3160 would likely add more positive momentum to the greenback for a test of 1.3180 and above 1.3200. On the flip side,a break under 1.3110 could send the pair under 1.3100 to the next strong support area seen at 1.3045/50.
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