The USD/CAD pair was closed at 1.30060 after placing a high of 1.30288 and a low of 1.29860. The currency pair USD/CAD rose to1.3030 level in the early trading session but failed to remain there and started to decline on the back of US dollar weakness and the rising crude oil prices on Wednesday.
The US’s mixed macroeconomic data failed to help the greenback gather strength against its rival currencies and forces the USD/CAD pair to lose most of its daily gains in the late trading session. There was no macroeconomic data from the Canadian side, so the pair followed the US data on Wednesday.
On the data front, at 18:30 GMT, the Prelim Gross Domestic Product for the third quarter remained flat at 33.1%. The Unemployment Claims from last week surged to 778K against the projected 732K and weighed on the US dollar. The Core Durable Goods Orders for October surged to 1.3% against the projected 0.5% and supported the US dollar. The Durable Goods Orders rose to 1.3% from the forecasted 1.0% and supported the US dollar. The Prelim Wholesale Inventories for October rose to 0.9% against the expected 0.4% and weighed on the US dollar.
The New Home Sales for October rose to 999K against the forecasted 972K and supported the US dollar. The Personal Income fell to -0.7% from the projected 0.0% and weighed on the US dollar. The Personal Spending raised to 0.5% from the anticipated 0.4% and supported the US dollar.
On the other hand, the weekly report published by the US Energy Information Administration (EIA) showed that the Crude Oil stocks declined by 0.75M barrels last week and boosted oil prices.
The WTI crude oil raised above the $46 level on Wednesday and gave strength to the Canadian dollar that added pressure on the USD/CAD pair.
However, the pair managed to remain on the positive side as the market mood was still risky due to the rising hopes of global economic recovery from the latest progress made in coronavirus vaccines from Pfizer & BioNtech, Moderna, and AstraZeneca.
Meanwhile, from Canada, almost 1,373 cases of coronavirus were reported, along with 35 additional deaths in Ontario. The total number of deaths from coronavirus in Toronto reached 3554 on Wednesday. The currency pair also remained strong ahead of the FOMC minutes release published in the early Thursday session.
Daily Technical Levels
Pivot Point: 1.3005
The USD/CAD has violated the sideways trading range of 1.3119 – 1.3035 level. A bearish breakout of the 1.3035 level is likely a further selling trend until the 1.2936 level. The pair forms a neutral candle, suggesting indecision among investors, perhaps due to lack of economic events. Secondly, the investors are expecting thin volatility amid the Thanksgiving holiday. Let’s consider staying bearish below 1.3030 today. Good luck!