USD/CAD sinks to 1.3100 on weaker Dollar

The selling pressure around the greenback has gathered further traction on Tuesday, now dragging USD/CAD to test daily lows in the 1.3100 neighbourhood.

USD/CAD attention to oil, US docket

The pair has resumed its recent downside today, fully fading yesterday’s bullish attempt and returning to the region of 2-week lows near 1.3100 the figure in response to a sharp sell off in the buck.

In fact, risk aversion sentiment – which has prevailed throughout Monday’s session – seems mitigated for the time being, encouraging USD-sellers to quickly step in and erode recent gains.

However, the consolidative theme around crude oil prices seems to be somewhat undermining CAD upside and thus alleviating the downside bias in spot. The barrlel of West Texas Intermediate is down smalls just above the $52.00 mark ahead of the opening bell in Euroland.

Later in the session, US inflation figures measured by the CPI and the regional manufacturing gauge tracked by the NY Empire State index should keep the interest around the buck. In addition New York Fed W.Dudley (permanent voter, centrist) and L.Brainard are due to speak later in the NA session.

USD/CAD significant levels

As of writing the pair is losing 0.54% at 1.3106 facing the next support at 1.3098 (low Jan.17) followed by 1.3028 (low Jan.12) and finally 1.3002 (low Oct.19). On the flip side, the initial hurdle lines up at 1.3189 (high Jan.16) followed by 1.3276 (100-day sma) and then 1.3311 (38.2% Fibo of the 2016 drop).