USD/CAD pares daily losses on oil selloff, trades around 1.3280
- WTI slumps below $58 after weekly EIA report.
- US Dollar Index looks to register modest daily gains.
- Upbeat data from US continues to support USD.
The USD/CAD pair dropped to 1.3260 area during the early trading hours of the American session before staging a rebound in the last couple of hours with the commodity-sensitive loonie struggling to find demand amid crude oil selloff. As of writing, the pair was up 0.1% on the day at 1.3282.
US economy expands at a more robust pace than expected
Earlier in the day, the greenback gathered strength against its peers after the data published by the US Bureau of Economic Analysis showed that the second estimate of the third-quarter US Gross Domestic Product (GDP) growth rose to 2.1% to beat the market expectation of 1.9%. Additionally, Durable Goods Orders in October rebounded to 0.6% from -1.4% in September and supported the USD's rally.
Boosted by the data, the US Dollar Index rose to its highest level in two weeks at 98.44 and is now consolidating its gains above 98.30, looking to close the day in the positive territory for the sixth time in the last seven days.
On the other hand, after the US Energy Information Administration's (EIA) weekly data revealed that crude oil stocks in the US increased by 1.6 million barrels in the week ending November 22nd, crude oil prices came under strong selling pressure to weigh on the CAD. As of writing, the barrel of West Texas Intermediate was trading at $57.90, erasing 0.5% on a daily basis.
Technical levels to watch for