USD/CAD Tumbles to 1.2730, Monthly Lows

USD/CAD Tumbles to 1.2730, Monthly Lows

8 June 2016, 08:19
Roberto Jacobs
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USD/CAD Tumbles to 1.2730, Monthly Lows

The Canadian dollar is extending its rally vs. its American peer today, sending USD/CAD to fresh monthly lows in the 1.2730 area.

USD/CAD lower on oil, USD

While the greenback continues to suffer the consequences of Friday’s miserable prints from US Payrolls, CAD has seen its buying interest renewed after the barrel of West Texas Intermediate posted fresh YDT highs above $50.50, levels last traded in October 2015.

The upbeat momentum in crude oil prices has been also supported by yesterday’s report by API, showing that US stockpiles have decreased by more than 3.5 million barrels during last week.

On the data front, Canadian Housing Starts and Building Permits are next on tap followed by the EIA’s weekly report on crude inventories.

USD/CAD significant levels

As of writing the pair is down 0.06% at 1.2729 facing the next support at 1.2590 (low Apr.20) and then 1.2458 (2016 low May 3). On the flip side, a breakout of 1.2906 (55-day sma) would aim for 1.2989 (20-day sma) and finally 1.3145 (high May 30).

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