USD/CAD tumbles to session lows near 1.3230, FOMC on sight

• The pair comes under renewed selling pressure in the low-1.3200s.
• WTI moves higher and retakes the $53.00 mark and above.
• US ADP report due later ahead of the FOMC meeting.

After two consecutive daily advances, USD/CAD has now come under some downside pressure and retreats to the 1.3230 region, or new 2-day lows.

USD/CAD looks to US data, trade talks

CAD is gaining upside momentum and is dragging spot lower on the back of a better tone in crude oil prices, with the barrel of West Texas Intermediate retaking the $53.00 mark and above ahead of the EIA report.

Attention will also be on the resumption of US-China trade talks today in Washington. The developments from these negotiations should prove vital for the outlook on the commodity-bloc, crude oil prices and thus CAD.

Later in the session, the US ADP report is due ahead of the FOMC gathering and press conference by Chief J.Powell. Another relevant event this week for CAD will be the speech by Deputy Governor C.Wilkins on ‘A look under the hood of Canada’s job market’ (Thursday).

USD/CAD significant levels

As of writing the pair is retreating 0.27% at 1.3233 and a breakdown of 1.3203 (low Jan.28) would expose 1.3197 (100-day SMA) and then 1.3179 (2019 low Jan.9). On the other hand, immediate contention aligns at 1.3285 (10-day SMA) followed by  1.3303 (21-day SMA) and finally 1.3327 (38.2% Fibo of October-December up move) and finally 1.3374 (high Jan.24).