USD/CAD struggles to pull away from 1.3250 area
- USD/CAD struggles to stay above the 1.3300 mark.
- US Dollar Index stays directionless on Tuesday following yesterday's rally.
- WTI trades in the negative territory near $58 ahead of weekly API data.
The USD/CAD pair tested the 1.3300 handle for the fifth straight trading day on Monday boosted by the broad-based USD strength but failed to preserve its momentum. After closing the day at 1.3260, the pair seems to have gone into a consolidation phase near the 1.3250 mark.
Markets turn quiet on Tuesday
The subdued trading action amid a lack of significant fundamental drivers on Tuesday makes it difficult for the pair to make a decisive move in either direction. In the second half of the day, the Conference Board's Consumer Confidence Index will be watched closely by the market participants. Ahead of that data, the US Dollar Index is virtually unchanged on the day at 98.60.
There won't be any macroeconomic data releases from Canada that could impact the Loonie's market valuation. Investors are likely to keep an eye on crude oil prices as a potential catalyst.
At the moment, the barrel of West Texas Intermediate is trading at $58.10, losing 0.7% on a daily basis. If the bearish pressure on the WTI gathers strength in the second half of the day, we could see the pair start, once again, climbing toward the 1.33 mark. Toward the end of the American session, the American Petroleum Institue will release its weekly crude oil stock report.
Technical levels to watch for