USD/CAD retreats to 1.3200 area ahead of US data
- USD/CAD is trading with modest losses, tests 1.3200.
- WTI is posting daily gains to help CAD stay resilient against its rivals.
- US Dollar Index is edging lower toward 93.00 amid risk flows.
The USD/CAD pair advanced to a daily high of 1.3240 on Tuesday but reversed its direction ahead of the American session. As of writing, the pair was down 0.12% on the day at 1.3200.
Rising crude oil prices support CAD
After slumping to its lowest level since January at 1.3132 on Monday, USD/CAD staged a strong rebound in the second half of the day and closed in the positive territory. The broad-based USD strength and a late pullback in crude oil prices helped the pair push higher.
Easing US-China geopolitical tensions provided a boost to market sentiment and allowed risk-sensitive crude oil prices to push higher on Tuesday. With the barrel of West Texas Intermediate (WTI) gaining nearly 1% to trade at $42.75, the commodity-related loonie stays strong against its peers. The American Petroleum Institue will release its Weekly Crude Oil Stock data at 2030 GMT.
Meanwhile, the US Dollar Index (DXY) is staying on the back foot as the greenback struggles to grab investors' attention as a safe-haven. At the moment, the DXY is down 0.25% on the day at 93.06. Later in the day, the Conference Board will release its Consumer Confidence data for the US. Other data from the US will include New Home Sales and the Richmond Fed's Manufacturing Index.
On the other hand, Bank of Canada (BoC) Deputy Governor Lawrence Schembri is scheduled to deliver a speech at 1730 GMT.
Technical levels to watch for