USD/CAD decline halted near 1.3350

CAD remains on a firm fashion on Wednesday, with USD/CAD so far finding decent support in the 1.3350 area following data and OPEC headlines.

USD/CAD attention to data, OPEC

Spot has rapidly retreated to the area of 3-week lows in the mid-1.3300s following a rally in crude oil prices and despite the constructive stance around the greenback.

CAD remains well underpinned after OPEC delegates have announced a deal to cut oil production by 1.2 mbpd to 32.5 mbpd at today’s meeting, pushing the barrel of West Texas Intermediate to the boundaries of the $49.00 handle, gaining more than 9%.

Data wise, Canadian GDP figures have surprised to the upside, showing the economy has expanded 0.3% MoM in September and at annualized 3.5% during the July-September period.

In the US data space, the ADP report saw the private sector adding more than 200K jobs in November, surpassing consensus. Extra data signalled mixed results from Personal Income and Personal Spending while Core PCE rose 1.7% on a year to October.

Later in the session, the post-OPEC press conference is due at 16GMT, whereas the Chicago Fed PMI, Pending Home Sales and the Fed’s Beige Book are due in the US ahead of the EIA’s weekly report on crude oil inventories and speeches by FOMC’s J.Powell (permanent voter, neutral) and Cleveland Fed L.Mester (voter, hawkish).

USD/CAD significant levels

As of writing the pair is retreating 0.42% at 1.3375 and a breach of 1.3357 (low Nov.30) would open the door to 1.3311 (38.2% Fibo of the 2016 drop) and then 1.3304 (55-day sma). On the flip side, the next hurdle lines up at 1.3446 (20-day sma) followed by 1.3566 (high Nov.18) and then 1.3575 (50% Fibo of the 2016 drop).