USD/CAD trades sideways around 1.3460 ahead of the US consumer confidence data


  • USD/CAD consolidates in a narrow trading band near 1.3458 on Tuesday.
  • The downtick in oil prices undermines the commodity-linked Loonie.
  • Most Fed officials still anticipate further rate hikes later this year.
  • Market players will monitor the Canadian GDP and, the US Core Personal Consumption Expenditure (PCE) Price Index on Friday.

The USD/CAD pair oscillates in a narrow range during the early Asian session on Tuesday. The weakening of the Loonie is weighed by the downtick in oil prices while the higher for longer narrative in the US lifts the US Dollar (USD) across the board. As of writing, USD/CAD is trading around 1.3457, gaining 0.02% on the day.

The US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, hovers around 105.95 after retreating from the highest level since November of 106.09 amid the USD demand and a rising of the US 10-year yield to the highest level since October 2007.

That said, the oil price edges lower for two straight days on Tuesday, which undermines the commodity-linked Loonie and might cap the upside for the USD/CAD pair as the country is the leading oil exporter to the US.

Most Fed officials still anticipate further rate hikes later this year. Susan Collins and Mary Daly, Presidents of the Federal Reserve Banks of Boston and San Francisco, stressed that, although inflation is slowing, future rate rises are likely. While Chicago Fed President Austan Goolsbee said that a soft landing is possible, inflation risks remain elevated, and the Fed should be fully committed to bringing inflation to 2%. These hawkish comments from Fed officials boost the USD and act as a tailwind for the USD/CAD pair.

Moving on, the US Consumer Confidence for September and housing data will be due later on Tuesday. On Thursday, the US Gross Domestic Product (GDP) Annualized for the second quarter will be released. The closely watched event will be the Core Personal Consumption Expenditure (PCE) Price Index, the Fed's preferred measure of consumer inflation, due on Friday. The annual figure is expected to drop from 4.2% to 3.9%. Also, Canadian GDP numbers will be due on Friday. Market players will take cues from these figures and find a clear direction in the USD/CAD pair.

USD/CAD

Overview
Today last price 1.346
Today Daily Change 0.0006
Today Daily Change % 0.04
Today daily open 1.3454
 
Trends
Daily SMA20 1.3545
Daily SMA50 1.3446
Daily SMA100 1.34
Daily SMA200 1.3461
 
Levels
Previous Daily High 1.3492
Previous Daily Low 1.3453
Previous Weekly High 1.3528
Previous Weekly Low 1.3379
Previous Monthly High 1.364
Previous Monthly Low 1.3184
Daily Fibonacci 38.2% 1.3468
Daily Fibonacci 61.8% 1.3477
Daily Pivot Point S1 1.3441
Daily Pivot Point S2 1.3428
Daily Pivot Point S3 1.3402
Daily Pivot Point R1 1.3479
Daily Pivot Point R2 1.3505
Daily Pivot Point R3 1.3518

 

 

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