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  • US Dollar Index extends higher above 97.
  • WTI rebound helps CAD limit the losses.
  • Canadian GDP growth loses momentum in Q3.

After advancing to a daily high of 1.3333 earlier in the session, the USD/CAD pair erased a portion of its daily gains and was seen trading at 1.3305, adding 0.15% on a daily basis.

Earlier today, the date from Canada showed that the real-GDP expanded by 2% on a yearly basis in Q3 following a 2% growth in Q2 and the Raw Material Price ındex (RMPI) declined by 2.4% on a monthly basis in October to put the loonie under a moderate selling pressure.

Additionally, the US Dollar Index broke above the 97 mark following the impressive Chicago PMI data and caused the pair to push higher. At the moment, the DXY is up 0.42% on the day at 97.20.

  • ISM Chicago PMI advances to 11-month high at 66.4 vs 58 expected.

However, the pair struggled to preserve its bullish momentum as the loonie found demand amid recovering oil prices. After dropping below the $50 handle earlier in the day, the barrel of West Texas Intermediate staged a rebound and was last seen trading near $50.50, where it was still down 1.5% on the day. Furthermore, Canada, the U.S., and Mexico signed the new USMCA trade agreement to replace NAFTA and helped the loonie limit its losses against its peers.  

  • Canada: Canada’s real gross domestic product (GDP) grew 0.5% in Q3.
  • Canada: Raw Materials Price Index (RMPI) drops 2.4% in October.

Technical outlook

The initial resistance for the pair aligns at 1.3330 (daily high) ahead of 1.3360 (Nov. 28 high) and 1.3385 (Jun. 27 high/2018 high). On the downside, supports are located at 1.3275 (daily low), 1.3240 (Nov. 28 low) and 1.3185 (Nov. 26 low).