USD/CAD refreshes daily lows below 1.2600 on oil recovery, stable USD

• USD/CAD extends the previous session’s lows on Wednesday in the initial Asian trading hours.
• US Dollar Index fell below 93.00 amid improved risk appetite.
• The Canadian dollar picks up momentum on oil prices rebound

The depreciative move in the US dollar pushes the USD/CAD pair on the lower edge during the initial Asian trading session on Wednesday. The pair turned to their lowest level since August 17 at 1.2576.

At the time of writing, USD/CAD is trading at 1.2601, up 0.10% for the day.

The US Dollar Index (DXY), which tracks the performance of the greenback against the six major currencies, losses track and slips below 93.00 on vaccine optimism.

Investors hope the FDA approval of the Pfizer/BioNTech could boost vaccination rates in the US and the economic recovery.

On the other hand, the Canadian dollar gained amid the sharp rebound in crude oil prices.

Oil prices currently rising nearly 3% on the day at $67.56, which capped the downside for the loonie. Oil is one of Canada’s major export commodities. 

In the latest development, Canadian Prime Minister Justin Trudeau focuses on a housing plan to revive his election forecast, the election is on September 20.

As for now, traders are waiting for the Canadian Wholesale Sales, US Durable Goods Orders data to trade fresh trading impetus.
 

USD/CAD additional levels