USD/CAD sidelined around 1.3430, FOMC eyed

The greenback is trading in a very tight range on Wednesday, taking USD/CAD to the 1.3440/30 band ahead of the opening bell in Euroland.

USD/CAD focus on oil, data, FOMC

The pair is now looking to stabilize in the middle of the weekly range around 1.3430, coming up after yesterday’s brief test of lows near 1.3370.

While the buck remains sidelined around 101.00 the figure when tracked by the US Dollar Index, the softer tone in crude oil prices seems to be limiting the downside somewhat.

Prices for the West Texas Intermediate has abandoned the area of recent tops above the $49.00 mark, slipping back to sub-$48.00 levels following a larger-than-expected build in Gasoline inventories, as reported by the API late on Tuesday. In the same report, US crude oil supplies unexpectedly decreased by nearly 1.3 million barrels.

Later in the day, US advanced manufacturing PMI gauged by Markit is due followed by Durable Goods Orders, New Home Sales, Initial Claims, the final Reuters/Michigan index for November and the FOMC minutes.

USD/CAD significant levels

As of writing the pair is retreating 0.11% at 1.3426 and a break below 1.3374 (low Nov.22) would open the door to 1.3311 (38.2% Fibo of the 2016 drop) and finally 1.3260 (low Nov.9). On the flip side, the immediate hurdle lines up at 1.3566 (high Nov.18) followed by 1.3575 (50% Fibo of the 2016 drop) and finally 1.3590 (high Nov.14).