USD/CAD comes down to test 1.3450, daily lows

The Canadian Dollar is trading on a firm fashion on Wednesday, now forcing USD/CAD to recede towards the are of daily lows in the mid-1.3400s.

USD/CAD attention to GDP figures

The pair is trading in the red territory for the first time after two consecutive advances despite the prevailing bid tone around the greenback and the offered bias in crude oil prices.

CAD remains strong despite the barrel of West Texas Intermediate is under pressure so far this week and particularly after the OPEC failed to deliver a more aggressive message at its meeting last week. At the time of writing, WTI is testing daily lows near $47.20, down nearly 1% for the day ahead of the API’s weekly report on US crude oil stockpiles.

Yields in the Canadian money markets, specially in the shorter end of the curve are trading in weekly lows, down for the third session in a row and at the same time widening the gap vs. their American peers.

In the data space, Canadian GDP figures will take centre stage later in the session, while pending home sales and the Chicago PMI will precede de release of the Fed’s Beige Book on the US side.

USD/CAD significant levels

As of writing the pair is losing 0.06% at 1.3451 and a break below 1.3424 (low May 30) would expose 1.3385 (low May 25) and finally 1.3356 (100-day sma). On the flip side, the next up barrier is located at 1.3483 (55-day sma) followed by1.3508 (50% Fibo of the April-May rally) and then 1.3541 (high May 24).