- WTI extends a slide in the NA session.
- US Dollar Index stays near 16-month highs above 97.
- Canadian economy expands 0.1% in August.
After edging down to the 1.31 area with the initial market reaction to the GDP data from Canada, the USD/CAD reversed its course and rose to its highest level since September 11 at 1.3165 as the commodity-sensitive loonie weakened against its rivals on falling crude oil prices. As of writing, the pair was trading at 1.3160, adding 0.4% on a daily basis.
Earlier today, Statistics Canada reported that the Canadian economy expanded 0.1% on a monthly basis in August to beat the analysts’ estimate of 0%. On a negative note, the raw material price index in Canada declined by 0.9% in September.
On the other hand, the broad-based USD strength didn’t allow the pair to gather bearish momentum. The US Dollar Index, which tracks the greenback against a basket of six major currencies, surged to its highest level of the year at 97.20 after the monthly ADP report that the private sector employment increased by 227K from September to October to surpass the market consensus of 189K. At the moment, the DXY is up 0.12% on the day at 97.12.
Meanwhile, falling crude oil prices put some extra weight on the commodity-sensitive loonie in the session as well. The weekly EIA report today revealed that the crude oil stocks in the U.S. increased by 3.22 million barrels and the output rose to a record high of 11.2 million barrels per day. As of writing, the barrel of West Texas Intermediate was losing 1% on the day at $65.65.
Technical levels to consider
The first technical resistance for the pair could be seen at 1.3165 (daily high) ahead of 1.3200 (psychological level) and 1.3225 (Sep. 6 high). On the downside, supports align at 1.3060 (20-DMA), 1.2990 (200-DMA) and 1.1915 (Oct. 16 low).
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