USD/CAD cautious near 1.3430, OPEC eyed

The Canadian dollar is trading almost unchanged vs. its American neighbour on Wednesday, with USD/CAD navigating a tight range around 1.3430.

USD/CAD focus on OPEC, data

The pair is looking to extend yesterday’s bullish attempt, recovering some extra ground after hitting lows in the sub-1.3400 area at the beginning of the week, all amidst an increasing cautious tone on the outcome of today’s OPEC meeting.

CAD will remain specially vigilant on the performance of crude oil prices today in light of the upcoming OPEC gathering, with the barrel of West Texas Intermediate trading in a more volatile fashion in recent sessions, managing to advance more than 1% to the boundaries of the $46.00 mark at the time of reading.

Following the latest CFTC report, CAD speculative net shorts have decreased to 3-week lows during the week ended on November 22.

Apart from the OPEC event, Statistics Canada will publish the GDP figures for the month of September, while today’s releases in the US docket include the ADP report, followed by Personal Income/Spending, inflation figures tracked by the PCE, the Chicago Fed PMI and Pending Home Sales, all preceding the Fed’s Beige Book. In addition, FOMC’s J.Powell (permanent voter, neutral) and Cleveland Fed L.Mester (voter, hawkish) are due to speak.

USD/CAD significant levels

As of writing the pair is gaining 0.04% at 1.3437 and a break above 1.3566 (high Nov.18) would aim for 1.3575 (50% Fibo of the 2016 drop) and finally 1.3590 (high Nov.14). On the flip side, the immediate support aligns at 1.3374 (low Nov.22) ahead of 1.3311 (38.2% Fibo of the 2016 drop) and finally 1.3260 (low Nov.9).