USD/CAD challenging lows near 1.3360, US data on sight

The greenback remains on the defensive so far this week, now sending USD/CAD to test the area of daily lows near 1.3360.

USD/CAD attention to US data, oil

Choppy week for the par so far although it remains well underpinned by the area of 1.3050 amidst a continuation of the selling bias around the buck.

The FOMC meeting passed largely unnoticed by market participants, which continue to closely follow the events coming from the FBI-Clinton drama ahead of the US presidential elections on November 8.

CAD is now finding extra buying interest following the so far mild recovery in crude oil prices after the recent sell off to 5-week lows, with the barrel of West Texas Intermediate bouncing off lows around $45.50.

Later in the NA session, Initial Claims are due followed by Markit’s Services PMI, the more relevant ISM Non-manufacturing and September’s Factory Orders. In Canada, the next big events will come tomorrow with the release of labour market figures for the month of October.

USD/CAD significant levels

As of writing the pair is losing 0.22% at 1.3364 and a breakdown of 1.3281 (20-day sma) would aim for 1.3093 (200-day sma) and then 1.3002 (low Oct.19). On the other hand, the initial hurdle aligns at 1.3433 (high Oct.28) followed by 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop).