The US dollar to Canadian dollar exchange rate dropped to 1.35689 as a result of negative economic data from the US.

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• USD/CAD experienced losses due to downbeat US economic data.

The pair currently trades last at 1.35689.

The previous day high was 1.3637 while the previous day low was 1.355. The daily 38.2% Fib levels comes at 1.3583, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3604, expected to provide resistance.

USD/CAD retraces from the previous day’s losses, trading around 1.3560 during the Asian session on Wednesday. The pair experienced a downward pressure due to the pullback in the US Dollar (USD), following the downbeat United States (US) economic data released on Tuesday.

As said, Consumer Confidence for August declined to 106.1 from the previous 114.0, lower than the projected reading of 116.0. Additionally, the JOLTS Job Openings displayed a reduction in July, reported 8.827M, swinging from the previous 9.165M. The index was expected to rise to 9.465M.

US Federal Reserve (Fed) Chairman Jerome Powell’s statement at the Jackson Hole Symposium indicated that the Fed’s decision on the next interest rate hike will be driven by economic data. Market participants are now awaiting more information to better understand the timing and magnitude of potential interest rate adjustments.

The US Dollar Index (DXY) hovers around 103.50 at the time of writing. The retreating US Treasury yields contributed to weakening the Greenback, which measures the performance of the US Dollar (USD) against the six other major currencies.

Additionally, the rise in Crude oil prices, contributed support to the Canadian Dollar (CAD) against the buck as Canada is one of the largest Oil exporters to the US. Western Texas Intermediate (WTI) trades near $81.35 by the press time.

Investors will like to monitor the upcoming data releases, seeking fresh impetus on the economic outlook of both countries. US Core Personal Consumption Expenditures (PCE) Index, weekly Jobless Claims, and Nonfarm Payrolls will be in focus during the week. On Canada’s docket, Gross Domestic Product (GDP) is due to be released on Friday.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3563 at the time of writing. Pair opened at 1.3552 and is trading with a change of 0.08 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3486, 50 SMA 1.3323, 100 SMA @ 1.3391 and 200 SMA @ 1.3461.

The previous day high was 1.3637 while the previous day low was 1.355. The daily 38.2% Fib levels comes at 1.3583, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3604, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3522, 1.3493, 1.3435
• Pivot resistance is noted at 1.361, 1.3667, 1.3697

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