USD/CAD flirting with lows near 1.3460

The Canadian Dollar remains on a firm note vs. its American neighbour on Tuesday, now dragging USD/CAD to the area of 4-week lows in the 1.3470/60 band.

USD/CAD lower on USD-selling

Spot is shedding ground for the third session in a row amidst the broader bearish trend sparked after the rejection from YTD tops in levels just below 1.3800 the figure seen earlier in the month.

The ongoing OPEC-led rally in crude oil prices keeps lending oxygen to CAD, while US politics stay as the main drag behind the buck’s increasing selling pressure.

Despite the daily retracement, the barrel of West Texas Intermediate managed to retake levels further north of the $51.00 mark in early trade, although the upside momentum seems to have run out of steam for the time being.

In the data space, Markit’s advanced Manufacturing PMI for the current month is due seconded by New Home Sales and the speech by Minneapolis Fed N.Kashkari (voter, dovish). In Canada, Wholesale Sales are only due.

USD/CAD significant levels

As of writing the pair is losing 0.27% at 1.3466 and a break below 1.3440 (61.8% Fibo of the April-May rally) would aim for 1.3408 (low Apr.24) and finally 1.3343 (100-day sma). On the flip side, the next up barrier is located at 1.3541 (high May 22) seconded by 1.3575 (38.2% Fibo of the April-May rally) and then 1.3641 (20-day sma).