USD/CAD climbs to highs near 1.3130

It seems the greenback has recovered the smile so far on Wednesday, with USD/CAD testing fresh daily highs in the 1.3125/30 band.

USD/CAD focus on oil, US data

The pair has quickly rebounded from yesterday’s troughs in the boundaries of the 1.30 handle in response to increasing selling pressure on CAD despite the API’s report showed a 1.3 million-barrel draw during last week. Concerns over the supply glut and rising oil production in the US keep weighing on the Canadian dollar ahead of today’s releases.

Later in the NA session and with the greenback back on the right footing, US ADP report is expected to show a creation of 170K jobs during July, ahead of the ISM Non-manufacturing and the weekly report on crude inventories by the EIA.

USD/CAD significant levels

As of writing the pair is up 0.09% at 1.3123 and a break above 1.3253 (high Jul.27) would aim for 1.3314 (200-day sma) and then 1.3575 (50% Fibo of the 2016 down move). On the flip side, the immediate support aligns at 1.3071 (20-day sma) followed by 1.2998 (low Jul.29) and finally 1.2983 (55-day sma) and finally 1.2947 (100-day sma).