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USD/CAD hits fresh lows after FOMC minutes

FXStreet (Córdoba) - USD/CAD fell further and approached 2-month lows following the release of the FOMC minutes, which showed Fed officials chose to wait before raising rates as they remain worried about low inflation.

Minutes also showed concerns that a premature tightening might erode the credibility of the Fed's inflation objective. Some officials said it would be appropriate to wait for information, confirming that the outlook for economic growth had not deteriorated significantly and that inflation was still on a path to return to the bank’s target over the medium term.

The dollar weakened across the board and USD/CAD fell to a daily low of 1.2978 as oil climbed to its strongest level since July above $50.00 a barrel. However, the pair found support ahead of yesterday’s low. At time of writing, USD/CAD is trading at 1.2990, recording a 0.50% loss on the day.

USD/CAD levels to watch

As for technical levels, next supports for USD/CAD are seen at 1.2971 (2-month low Oct 7), 1.2951 (Aug 12 low) and 1.2881 (100-day SMA). On the flip side, resistances line up at 1.3079 (100-hour SMA), 1.3133 (Oct 6 high) and then 1.3192 (50-day SMA).

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