USD/CAD bounces off 1.3450, EIA, data eyed

The Canadian dollar is alternating gains with losses vs. its American neighbor on Wednesday, taking USD/CAD to the area of 4-day lows near 1.3450.

USD/CAD attention to oil, data

The pair is struggling to gather upside traction today as the buying interest around CAD has intensified as of late following the strong rebound in crude oil prices.

In fact, the barrel of West Texas Intermediate has gained nearly 9% since last week’s lows near $42.20 on rising hopes of a deal to limit crude oil output at the OPEC meeting in Vienna on November 30.

Collaborating with the downside, the US Dollar Index has receded from yesterday’s tops in the boundaries of 100.30, levels last seen in December 2015.

Data wise in the US docket, Industrial/Manufacturing Production is due followed by the NAHB index, Capacity Utilization and the weekly report on crude inventories by the DoE. In addition, Philly Fed P.Harker (2017 voter, hawkish) is also due to speak.

In Canada, Manufacturing Shipments is only due along with the speech by BoC Deputy Governor T.Lane.

USD/CAD significant levels

As of writing the pair is up 0.04% at 1.3453 and a break above 1.3575 (50% Fibo of the 2016 drop) would expose 1.3590 (high Nov.14) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the other hand, the immediate support lines up at 1.3395 (20-day sma) followed by 1.3311 (38.2% Fibo of the 2016 drop) and then 1.3260 (low Nov.9).