USD/CAD advances to daily highs near 1.3150

The greenback is intensifying its upside bias vs. its main rivals on Tuesday, now lifting USD/CAD to fresh session tops near 1.3150.

USD/CAD up on USD gains, looks to API

The continuation of the bullish momentum around the US dollar during the first half of the week has prompted the pair to bounce off Monday’s troughs in the 1.3065/60 band and to retake the 1.3100 handle and beyond.

In addition, the recent recovery of crude oil prices seems to have lost some vigour, motivating the barrel of West Texas Intermediate to stall around the mid-$48.00s ahead of the weekly report on US stockpiles due later in the NA session.

Nothing scheduled today in Canada, whereas the IBD/TIPP Economic Optimism index is only due in the US docket.

In the meantime, CAD remains driven almost exclusively by oil dynamics, leaving to a secondary role the US-CA 2y spread differential, while speculators have re-positioned on the short side of CAD during the week ended on September 27.

USD/CAD significant levels

As of writing the pair is gaining 0.20% at 1.3146 facing the next hurdle at 1.3276 (high Sep.27) followed by 1.3311 (38.2% Fibo of the 2016 drop) and finally 1.3575 (50% Fibo of the 2016 drop). On the other hand, a breach of 1.3061 (55-day sma) would aim for 1.2996 (low Sep.22) and then 1.2818 (low Sep.7).