USD/CAD finds support near 1.33 and starts consolidating daily losses
- WTI approaches $63 ahead of the weekly EIA report.
- Risk-on mood helps the loonie preserve its strength.
- US Dollar Index stays in red near 97 ahead of data.
The USD/CAD pair came under a renewed pressure on Wednesday and touched its lowest level in two weeks at 1.3294. At the moment, the pair is trading at 1.3305, losing 0.23% on a daily basis.
Strong PMI data from China revived hopes of the world's second-biggest economy gathering momentum and eased concerns over oil demand outlook to provide a boost to the commodity-sensitive loonie. After touching its highest level since early November at $62.96, the barrel of West Texas Intermediate has gone into a consolidation phase and was last seen trading at $62.65, where it was up 0.12% on a daily basis. Later in the session, the weekly EIA report from the U.S. will be the next catalyst.
Moreover, Financial Times earlier in the day reported that the U.S. and China were able to resolve most of the issues standing in the way of a trade deal to allow global equity indexes to rally today.
On the other hand, the greenback is having a difficult time attracting investors on Wednesday as the upbeat market sentiment keeps the risk-sensitive assets in crosshairs. Ahead of the ADP private sector employment and the ISM and the IHS Markit Services PMI data, the US Dollar Index is down 0.28% on a daily basis at 97.04.
Technical levels to consider
The pair could find the initial support at 1.3300 (50-DMA) ahead of 1.3250 (Mar. 19 low) and 1.3220 (Feb. 12 low). On the upside, resistances align at 1.3350 (Apr. 3 high), 1.3400 (Mar. 21 low) and 1.3450 (Mar. 28 high).