- USD/CAD regains positive traction on Wednesday and reverses some of the overnight decline.
- Increased bets on an aggressive Fed rate hike help revive dollar demand and extend support.
- Mostly bullish US Durable Goods Orders continue to support intraday USD strength.
- A rebound in oil prices could prop up the loonie and keep any significant upside capped.
The pair USD/CAD maintains its bid tone throughout the early American session and rises to a fresh daily high in the last hour, with bulls looking to build on momentum beyond the key psychological 1.3000 level.
The US dollar rebounds strongly on Wednesday and is back close to the two-decade highs hit the day before, which in turn extends support for the USD/CAD pair. Disappointing US PMI data on Tuesday and weak US home sales data had fueled speculation that the Fed could be less aggressive in its rate hike cycle. However, statements by Minneapolis Fed President Neel Kashkari, who has moved the most, have reignited expectations of a large-scale interest rate hike in September and pushed the dollar higher.
Intraday dollar buying remains well supported by mostly upbeat US Durable Goods Orders data. The US Census Bureau reported that core orders were flat month-on-month in July, disappointing expectations for a 0.6% rise. The disappointment, however, was offset by an upward revision to the previous month’s reading, which showed 2.2% growth. Additionally, orders excluding transportation items posted slightly better-than-expected growth of 0.3%, reaffirming the Fed’s expectations.
In fact, current market prices indicate that there is a better chance that the Fed will raise interest rates by 75 basis points at the September meeting. This continues to support elevated US Treasury yields and continues to support the dollar. That said, a modest rally in crude oil prices to a three-week high appears to underpin the commodity-linked loonie and could cap USD/CAD gains. Nonetheless, spot prices have managed to reverse some of last night’s corrective decline from a six-week high.
Technical levels
USD/CAD
Panorama | |
---|---|
Last Price Today | 1.3008 |
Today’s Daily Change | 0.0054 |
Today’s Daily Change % | 0.42 |
Today’s Daily Opening | 1.2954 |
Trends | |
---|---|
20 Daily SMA | 1.2874 |
50 Daily SMA | 1.2915 |
100 Daily SMA | 1,283 |
200 Daily SMA | 1.2761 |
levels | |
---|---|
Previous Daily High | 1.3063 |
Previous Daily Minimum | 1.2933 |
Previous Maximum Weekly | 1.3009 |
Previous Weekly Minimum | 1.2769 |
Monthly Prior Maximum | 1.3224 |
Previous Monthly Minimum | 1.2789 |
Daily Fibonacci 38.2% | 1.2983 |
Daily Fibonacci 61.8% | 1.3014 |
Daily Pivot Point S1 | 1.2904 |
Daily Pivot Point S2 | 1.2854 |
Daily Pivot Point S3 | 1.2774 |
Daily Pivot Point R1 | 1.3033 |
Daily Pivot Point R2 | 1.3113 |
Daily Pivot Point R3 | 1.3163 |
Source: Fx Street

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