USD/CAD hits fresh highs above 1.3000

The loonie extended losses against the US dollar and reached the lowest levels in a month. USD/CAD rose above 1.3000 and peaked at 1.3015.

A stronger US dollar across the board and a decline in crude oil prices weakened the pair. The WTI barrel is falling 2.50%, and it was trading around $43.50.

Earlier, the Canadian housing starts report was released and it showed a bigger-than-expected the decline. The annual rate fell 5.4% to 191K in April from 202K of the previous months and below the 195K expected.

USD/CAD continues to rise

The pair is about to post the fourth daily gain out of the last five trading days as it continues to correct higher after falling last Tuesday to 1.2460, the lowest level since June 2015.

That day USD/CAD made an important reversal and finished sharply higher. Then it continued to rise breaking key technical levels. Today it is climbing above the 23.6% Fibonacci retracement of the decline from 1.46 to 1.24.