USD/CAD inches closer to 1.33 as US Dollar Index pushes higher
- US Dollar Index gains traction in the NA session, advances to 2-week highs.
- Upbeat consumer sentiment report from the U.S. provides a boost to the buck.
- WTI falls below $52 ahead of API report.
After fluctuating in a relatively tight range near mid-1.32s, the USD/CAD pair gathered bullish momentum in the NA session and rose to its highest level in a week at 1.3385. As of writing, the pair was trading at 1.3280, adding 0.18% on a daily basis.
Following the Conference Board's consumer sentiment report, the greenback started to gather strength against its peers. Despite the fact that the CB's headline Consumer Confidence Index dropped to 135.7 in November from 137.9 in October, the underlying details of the report showed that consumers were going into the holiday season in a great shape. Commenting on the data, "The US consumer is the most optimistic in the world The Conference Board Nov confidence index fell to 135.7 from 137.9 in Oct but it "remains at historically strong levels" according to Lynn Franco of the Board. Friday's shopping surge was no fluke. Santa will be busy this year," FXStreet Senior Analyst Joseph Trevisani said. At the moment, the DXY is up 0.35% on the day at 97.40.
On the other hand, reports of Saudi Arabia planning to cut crude oil output despite President Trump requests to keep prices low helped crude oil carry its recovery into the second straight day on Tuesday and helped the commodity-related loonie stay resilient against other major currencies. However, ahead of the weekly API stock report, the barrel of West Texas Intermediate lost some momentum and was last seen trading at $51.85, where it was still up 0.5% on the day.
Technical levels to consider
The pair could encounter the first technical support at 1.3200 (psychological level) ahead of 1.3130 (Nov. 16 low) and 1.3085 (50-DMA). On the upside, resistances align at 1.3320 (Nov. 20 high), 1.3385 (Jun. 27 high) and 1.3470 (Jun. 12, 2017, high).