24 Aug 2015
USD/CAD spikes to 1.3275 – highest levels since 2004
FXStreet (Mumbai) - USD/CAD extends to the upside and reached more than a decade high beyond 1.3270 levels in the mid-European session, largely on CAD weakness as it tracks its other commodity currencies lower, undermined by falling oil, copper and precious metal prices.
USD/CAD higher on tumbling oil prices
Currently, the USD/CAD pair trades 0.49% higher at 1.3253, easing-off fresh 11-year highs at 1.3273 levels. The Canadian dollar remains weak amid falling commodity prices with most commodities sitting at their multi-year low levels. US oil now sits at fresh 6.5 year lows below $ 39, adding to the weakness in the Canadian dollar. Oil is Canada’s top export product and China is world’s second largest oil consumer.
The USD/CAD remained bid and the pair ignored a total retreat of dollar bulls on the EUR/USD and USD/JPY. The US dollar index, the virtual gauge of greenback’s relative strength, now trades -0.81% lower at 94.07.
Analysts at Bank of Tokyo-Mitsubishi noted, "Commodity-related currencies have been hit hardest as commodity prices have fallen to their lowest level since 1999 according to Bloomberg’s commodity price index.”
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.3273 (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).
USD/CAD higher on tumbling oil prices
Currently, the USD/CAD pair trades 0.49% higher at 1.3253, easing-off fresh 11-year highs at 1.3273 levels. The Canadian dollar remains weak amid falling commodity prices with most commodities sitting at their multi-year low levels. US oil now sits at fresh 6.5 year lows below $ 39, adding to the weakness in the Canadian dollar. Oil is Canada’s top export product and China is world’s second largest oil consumer.
The USD/CAD remained bid and the pair ignored a total retreat of dollar bulls on the EUR/USD and USD/JPY. The US dollar index, the virtual gauge of greenback’s relative strength, now trades -0.81% lower at 94.07.
Analysts at Bank of Tokyo-Mitsubishi noted, "Commodity-related currencies have been hit hardest as commodity prices have fallen to their lowest level since 1999 according to Bloomberg’s commodity price index.”
USD/CAD Technical Levels
To the upside, the next resistance is located at 1.3273 (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).