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  • USD/CAD continues to push lower in the American session.
  • US Dollar Index extends slide toward 91.50 on Wednesday.
  • WTI rises more than 4%, trades above $63.

The USD/CAD pair rose to a daily high of 1.2576 during the European trading hours but reversed its direction in the second half of the day. As of writing, the pair was trading at its lowest level since March 22 at 1.2499, losing 0.24% on a daily basis.

Oil rally, USD selloff drag USD/CAD

The broad-based selling pressure surrounding the greenback continues to weigh on USD/CAD. Despite a modest rebound witnessed in the benchmark 10-year US Treasury bond yield, the US Dollar Index (DXY) extended its slide after breaking below 92.00 and touched its worst level in more than three weeks at 91.57. At the moment, the DXY is losing 0.26% at 91.60.

While speaking at an event organized by the Economic Club of Washington, FOMC Chairman Jerome Powell said the market should focus on the outcomes rather than the last dot plot. Powell further noted that it was likely for the Fed to start tapering the QE before going for a rate hike.  

On the other hand, the sharp upsurge witnessed in crude oil prices is providing a boost to the commodity-related loonie. After the data published by the US Energy Information Administration showed that crude oil inventories in the US declined by 5.9 million barrels in the week ending April 9, the barrel of West Texas Intermediate (WTI) shot higher. Currently, WTI is trading at $63.20, rising 4.5% on a daily basis.

Technical levels to watch for