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USD/CAD off highs, back below 1.3600

FXStreet (Edinburgh) - The offered tone is not giving up on the Canadian dollar on Tuesday, now allowing USD/CAD to test fresh cycle highs near 1.3630 albeit easing some ground afterwards.

USD/CAD boosted by oil slump

The current drop of the West Texas Intermediate to multi-year lows in sub-$37.00 levels is hammering the Canadian dollar, which has depreciated to levels last seen in June 2004 around 1.3630 vs. its American neighbor.

In another direction, auspicious prints from the Canadian housing sector saw Housing Starts and Building Permits both surpassing expectations at 211.9K and 9.1%, respectively. Despite the healthy results, markets have largely bypassed the reading, more focused on the crude-dynamics instead.

The next relevant event in Canada will be the speech and press conference by BoC’s S.Poloz at the Empire Club of Canada, due later today.

USD/CAD levels to consider

As of writing, the pair is advancing 0.61% at 1.3597 with the initial hurdle at 1.3624 (multi-year high Dec.8) followed by 1.3700 (psychological level). On the downside, a drop below 1.3217 (355-day sma) would expose 1.3192 (100-day sma) and then 1.3162 (7-month uptrend).

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