USD/CAD drops to fresh 2-week lows below 1.35
- Disappointing PMI data forces greenback to weaken further.
- US Dollar Index stays in the red below 96.50.
- Oil recovery loses momentum as risk-aversion takes control of markets.
The USD/CAD pair extended the slide that started in the early NA session and fell below the 1.35 mark for the first time since December 20. As of writing, the pair was down 100 pips, or 0.75%, on the day at 1.3475.
Earlier today, the decisive recovery seen in crude oil prices with the barrel of West Texas Intermediate rising above the $47 mark provided the initial boost to the commodity-sensitive loonie. Although the WTI retreated to $46.70 area in the last hours, the bearish momentum surrounding the pair remained intact amid a broadly weaker greenback.
Following the ISM Manufacturing PMI data, which came in at 54.1 in December to miss the analysts' forecast of 58, the US Dollar Index slumped to a daily low of 96.20. As of writing, the index was down 0.4% on the day at 96.30. With today's data out of the way, investors now will wait for tomorrow's employment figures from both Canada and the U.S.
Previewing tomorrow's NFP report, "The greenback has profited from risk averse flows towards the year end as equity losses and gloomy economic prognostications led traders to safety. A good US employment report will allay some of the contaigion fears for the US economy but without a trade agreement with China the global complexion and the dollar bid will change little," said FXStreet senior analyst Joseph Trevisani.
Key technical levels
Today Last Price: 1.3479
Today Daily change: -1.0e+2 pips
Today Daily change %: -0.758%
Today Daily Open: 1.3582
Previous Daily SMA20: 1.3523
Previous Daily SMA50: 1.3328
Previous Daily SMA100: 1.3171
Previous Daily SMA200: 1.307
Previous Daily High: 1.3664
Previous Daily Low: 1.3568
Previous Weekly High: 1.4134
Previous Weekly Low: 1.3564
Previous Monthly High: 1.4134
Previous Monthly Low: 1.316
Previous Daily Fibonacci 38.2%: 1.3605
Previous Daily Fibonacci 61.8%: 1.3627
Previous Daily Pivot Point S1: 1.3546
Previous Daily Pivot Point S2: 1.351
Previous Daily Pivot Point S3: 1.3451
Previous Daily Pivot Point R1: 1.3641
Previous Daily Pivot Point R2: 1.37
Previous Daily Pivot Point R3: 1.3736