USD/CAD consolidating daily gains below 1.34
The USD/CAD pair's bullish momentum lost traction after the pair touched the 1.34 level during the NA session. Having spent the last couple of hours in a tight range, the pair seems to be in a consolidation phase. At the moment, the pair is up 0.5% at 1.3385.
The offered tone around WTI crude oil hurt the CAD on Monday as the black gold stayed under pressure amid a report suggesting that Russia only pledged to 60% of its total promised output cut. Last week, OPEC officials gave optimistic messages regarding an extension of the output cut deal with the condition of Russia complying with its commitment. A separate report showed that Iran's combined exports of crude oil and gas surpassed the 3 mln bpd mark, dragging the crude oil prices even lower. At the end of the day, WTI settled at $50.27 with a daily loss of 0.65%.
PMI reports from both Canada and the United States were largely ignored by the participants earlier during the session. The Bank of Canada released its Business Outlook Survey for Spring 2017. The report highlighted strengthening of domestic demand and a modest recovery in business sentiment after a two-year period of weakness.
- BoC Business Outlook Survey - Spring 2017: Hiring intentions remain positive overall
Technical outlook
With a prolonged rise above the 1.3400 (psychological level) mark, the pair could target 1.3480 (Mar. 15 high) and 1.3533 (Mar. 9 high). On the downside, the first technical support is located at 1.33 (psychological level) followed by 1.3265 (50-DMA) and 1.3220 (200-DMA).
