USD/CAD soars after crude inventories data

FXStreet (Córdoba) - USD/CAD rose through the 1.3100 level to fresh highs after data showed US inventories of crude oil rose by 2.62M barrels last week, versus a drop of 0.8M expected.

The loonie weakened across the board tracking oil prices, with WTI falling to fresh cycle lows sub-$42.00/bbl amid concerns of global supply glut. USD/CAD broke above the 1.31 mark and reached a 2-day high of 1.3135 in recent dealings. At time of writing, the pair is trading at 1.3130, recording a 0.56% gain on the day.

While the CAD continues to suffer on the back of oil prices, markets’ attention turns to FOMC last meeting minutes for signs of the timing the Fed plans to start raising rates.

USD/CAD levels to watch


On the upside, immediate resistances are seen at 1.3151 (Aug 17 high), 1.3181 (Aug 10 high) and 1.3200 (psychological level). On the downside, supports could be found at 1.3023 (Aug 19 low), 1.3015 (Aug 14 low) and 1.3000 (psychological level).

New Zealand CPI to stay below 1% in 2015 - BNZ

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Crude oil drops sharply to lowest since 2009 after inventory data

Crude oil resumed the decline and accelerated below $42 a barrel. It bottomed recently at $41.35, reaching the lowest level in six and a half years. The movement followed the report about inventories that showed the biggest rise in four months.
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