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USD/CAD trims US session loses, back to recent multi-month highs

  • Oil prices gave back half of Wednesday's gains, weighing on the CAD.
  • Canadian Markit Manufacturing PMI fell in December to 53.6.

The Canadian dollar was among the strongest against the greenback on Wednesday, underpinned by oil prices´ recovery during the US session, sending the pair down to 1.3570 despite soft Canadian data, as the Canadian Markit Manufacturing PMI fell in December to 53.6 from 54.9 in November, another sign of global economic slowdown. Entering the Asian session and following the collapse in Wall Street in futures trading, the pair recovered roughly 100 pips, now close to the multi-month high of 1.3664 printed on the last trading day of 2018.

While the dollar gave back most of the gains triggered by the wild ride witnessed following Apple´s warning cutting revenues forecast, the USD/CAD pair holds on to its gains. The short-term technical picture is neutral-to-bullish according to the 4 hours chart, as the pair has regained ground above a flat 20 SMA, now offering support around 1.3620, while technical indicators turned back north, currently advancing within neutral levels. 

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