- The loonie is the weakest among those linked to raw materials.
- USD / CAD falls for the fourth day in a row, it could have the lowest daily close since the beginning of September.
The USD / CAD remains trading around the 1.3100 area. The loonie has lost steam on Wednesday, but that is being overshadowed by a general decline in the dollar. DXY has been trading at lows since early September just above 92.50.
The loonie on Wednesday is running behind after rising strongly on Tuesday. The drop in oil, some optimism in the stock markets and the economic data are among the weight factors. For example, AUD / CAD, which fell yesterday from above 93.00 to 92.45, the lowest level in four and a half months, is trading at the 93.20 area, after a strong rebound.
Data from Canada for inflation and retail sales were released that had no major impact on loonie. Oil for its part loses 1.50% and operates in the $ 41.00 zone. Shares on Wall Street rallied in the last hour and the Dow Jones is up 0.45% and the Nasdaq is up 0.65%.
In the US, the focus is on negotiations for more fiscal stimulus. In the afternoon the Federal Reserve Beige Book although a great impact is not expected.
From a technical point of view, the USD / CAD maintains a bearish bias in the short term. A confirmation below 1.3100 would point to more lows. At the low of the day at 1.3080 is the first support followed by 1.3030 / 35. To the upside, resistances are seen at 1.3150, followed by 1.3205.
Credits: Forex Street
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