USD/CAD hits fresh 11-year highs beyond 1.3200

FXStreet (Mumbai) - The Canadian dollar continues to get beaten by its American counterpart in the European trades, lifting USD/CAD to fresh multi-year highs above 1.32 handle, as the loonie remains pressured on tumbling oil prices and on ongoing worries over China’s economic slowdown.

USD/CAD retraces from 1.3259

Currently, the USD/CAD pair trades 0.42% higher at 1.3243, having posted a high at 1.3259 and a low at 1.3216. USD/CAD remains strongly bid largely on broad CAD weakness fuelled by the latest collapse in Chinese stocks, raising concerns over the health of the Chinese economy.

While falling US oil prices, with WTI now sitting at fresh 6.5 year lows just ahead of $ 39, also added to the weakness in the Canadian dollar. Oil is Canada’s top export product and China is world’s second largest oil consumer.

However, the US dollar extends its recent run of losses versus its major peers after the dovish FOMC minutes released last week, capping the gains in the USD/CAD pair . The US dollar index, the virtual gauge of greenback’s relative strength, now trades -0.39% lower at 94.45.

USD/CAD Technical Levels

To the upside, the next resistance is located at 1.3259 (Today’s High) levels and above which it could extend gains to 1.3300. To the downside, immediate support might be located at 1.3216 (Today’s Low) levels and below that at 1.3178 (Aug 23 Low).

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