- The absence of the US traders confined Loonie moves.
- Energy players also remained on a back-foot amid no fresh catalysts.
- Today’s US economic data is in the spotlight for now.
Like all other major currency pairs, USD/CAD also trades modestly changed near 1.3440 during early Tuesday. Absence of the US traders and lack of fresh catalysts seem to have played their role.
The Memorial Day holiday at the US confined the pair’s moves yesterday whereas no major data/events from Canada also contributed to the lack of momentum.
Prices of crude oil, Canada’s largest export item, also remain under pressure after gradually recovering from the 100-day simple moving average (SMA) during late last week.
The US and Chinese policymakers continue to argue over each other’s policies and behavior but markets gave little attention to it.
Investors may now await second-tier data from the US like S&P/Case-Shiller home price indices, consumer confidence, and Dallas Fed manufacturing business index in order to determine near-term trade direction.
While housing market indicator could soften to 2.8% from 3.0% prior during March, prior readings of manufacturing and consumer sentiment gauges were 2.0 and 129.2 respectively.
Technical Analysis
Not only 50-day SMA near 1.3410 but 1.3360 and 1.3330 level comprising 100-day SMA can also limit the immediate downside of the pair while 1.3510 and 1.3570 seem adjacent resistances to question nearby advances.
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