- Traders reassess two-day declines after API data, greenback buying.
- The US, Canada and EIA inventory reports will be crucial to watch next.
The USD/CAD pair seesaws around 1.3300 during early Wednesday. The quote is likely deviating from its last two-day moves as it follows a recent uptick in the US Dollar (USD) coupled with the pullback in Crude prices. Economic data from the US and Canada will join EIA’s official weekly crude stock report to direct near-term trade sentiment.
USD/CAD, also known as Loonie, witnessed downside pressure since Monday as weak USD and rising crude prices favored sellers. The greenback was majorly bearing the burden of expected recession due to yield signals whereas supply crunch at Venezuela pleased energy traders.
Off-late, the WTI crude witnessed pullback after the American Petroleum Institute (API) released results of its oil stock survey concerning the private industries for the week ended on March 22. As per the report, 1.9 million barrels were added to the inventory than the previous contraction of 2.13 million barrels.
The US Dollar (USD) seems taking advantage of the overall market pessimism surrounding Brexit and likely rate-cuts from the Reserve Bank of New Zealand (RBNZ) and the Reserve Bank of Australia (RBA) during initial Wednesday.
Next up in the focus will be January month trade balance numbers from the US and Canada followed by official EIA crude oil stocks change for the week ended on March 25.
Forecasts suggest the US trade balance number to rise to $-57.0 billion from $-59.8 billion whereas the same figures from Canada could also advance to $-3.50 billion from $-4.59 billion (revised). Also, the Energy Information Administration (EIA) crude oil stocks might follow the API’s footsteps and register an increase of +0.309 million versus -9.589 million prior.
USD/CAD Technical Analysis
In addition to providing a sustained break of 1.3420 resistance-line stretched since early January, the quote should also cross current month high around 1.3470 to target 1.3500 and 1.3565 during further upside.
Alternatively, 1.3370 and 1.3330 can entertain short-term sellers ahead of highlighting 100-day simple moving average (SMA) near 1.3310.
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