The Canadian dollar has surrendered its initial gains vs. its American peer on Thursday, now lifting USD/CAD to the vicinity of 1.3430.

USD/CAD focus on oil, US data

The persistent recovery of crude oil prices has been lending support to the Canadian dollar in recent weeks, dragging spot to briefly test multi-month troughs in the 1.3380 area on Tuesday albeit recovering some ground afterwards.

While crude oil dynamics remain the exclusive driver behind CAD, today’s US docket will take USD to the fore, as Initial Claims, Factory Orders and the ISM Non-manufacturing are due later in the NA session.

USD/CAD significant levels

As of writing the pair is advancing 0.04% at 1.3432 facing the next resistance at 1.3666 (100-day sma) followed by 1.3716 (20-day sma) and then 1.3861 (high Feb.24). On the flip side, a breakdown of 1.3383 (low Mar.1) would open the door to 1.3289 (200-day sma) and finally 1.3034 (low Nov.3 2015).

The Canadian dollar has surrendered its initial gains vs. its American peer on Thursday, now lifting USD/CAD to the vicinity of 1.3430…

(Market News Provided by FXstreet)

By FXOpen