USD/CAD drops to multi-week lows near 1.33 as oil recovery gathers momentum
- WTI climbs toward $50 on reports of Saudis looking to cut exports.
- Ivey PMI improves in December in Canada.
- US Dollar Index fails to recover after the weak ISM PMI report.
After spending the first half of the day in a relatively tight range near 1.3350, the USD/CAD pair came under a renewed pressure in the last hour and fell to its lowest level since December 10 at 1.3302. As of writing, the pair was trading at 1.3307, losing 0.68% on the day.
A sharp increase seen in crude oil prices seems to be the primary reason behind the pair's recent slump. After the Dow Jones Newswires reported that Saudi Arabia was planning to cut exports by 800,000 barrels per day from November levels to an average of 7.1 million bpd, the barrel of West Texas Intermediate rose to its highest level in three weeks at $49.75 to boost the demand for the commodity-related loonie and was last seen up 2.6% on the day at $49.50. Additionally, the Ivey PMI in Canada improved to 59.7 in December from 57.2 in November to lend additional support to the currency.
On the other hand, the ISM reported that the Non-Manufacturing PMI in the U.S. fell to 57.6 to miss the experts' forecast of 59. At the moment, the US Dollar Index is losing 0.5% on the day at 95.70. Later in the session, Atlanta Fed President Bostic is scheduled to deliver a speech.
Technical levels to consider
Today Last Price: 1.3307
Today Daily change: -91 pips
Today Daily change %: -0.679%
Today Daily Open: 1.3398
Previous Daily SMA20: 1.3533
Previous Daily SMA50: 1.3342
Previous Daily SMA100: 1.3177
Previous Daily SMA200: 1.3076
Previous Daily High: 1.3498
Previous Daily Low: 1.338
Previous Weekly High: 1.3666
Previous Weekly Low: 1.338
Previous Monthly High: 1.4134
Previous Monthly Low: 1.316
Previous Daily Fibonacci 38.2%: 1.3425
Previous Daily Fibonacci 61.8%: 1.3453
Previous Daily Pivot Point S1: 1.3353
Previous Daily Pivot Point S2: 1.3308
Previous Daily Pivot Point S3: 1.3236
Previous Daily Pivot Point R1: 1.347
Previous Daily Pivot Point R2: 1.3542
Previous Daily Pivot Point R3: 1.3587