USD/CAD stronger, visits 1.3180 ahead of API

The greenback keeps its march north unabated during the first half of the week, now lifting USD/CAD to test the area of fresh tops near 1.3180.

USD/CAD looks to API

The pair is reverting two consecutive sessions with losses on Tuesday, managing to advance to the upper end of the recent range and at shouting distance from the critical barrier at 1.3200 the figure.

The current upside in the buck remains the exclusive driver of today’s up move in spot, all propped up by a broad-based selling bias in the risk-associated universe and a steady performance from crude oil prices.

It will be a very interesting week for CAD, as the weekly report on US crude stockpiles by the API is due later in the session, ahead of Wednesday’s report by the EIA and Friday’s labour market figures along with US Non-farm Payrolls. In addition, Senior Deputy Governor C.Wilkins is due to speak on Wednesday and Friday while the BoC will publish its Business Outlook Survey on Friday.

In the meantime, crude oil dynamics remain the almost exclusive driver of CAD, taking the US-CA 2y spread differential to the passenger’s seat, while speculators have re-positioned on the short side of CAD during the week ended on September 27.

USD/CAD significant levels

As of writing the pair is gaining 0.43% at 1.3176 facing the next hurdle at 1.3276 (high Sep.27) followed by 1.3311 (38.2% Fibo of the 2016 drop) and finally 1.3575 (50% Fibo of the 2016 drop). On the other hand, a breach of 1.3061 (55-day sma) would aim for 1.2996 (low Sep.22) and then 1.2818 (low Sep.7).