USD/CAD sellers attack 1.2300 as upbeat markets battle WTI pullback

  • USD/CAD struggles to extend recovery from weekly bottom.
  • Fedspeak, Biden’s infrastructure spending headlines favor risk appetite.
  • WTI consolidates recent gains amid mixed clues during quiet session.
  • US Durable Goods Orders, Fed’s signals and US stimulus talks will be the key.

USD/CAD refreshes intraday low to 1.2300 amid a lackluster Asian session on Thursday morning. The Loonie pair remained unchanged the previous day as bulls and bears jostle amid mixed concerns.

Among them, the downbeat print of Canadian Retail Sales for April, -5.7% MoM versus -5.0% forecast, joins the mixed US Markit PMIs to test the USD/CAD bears. On the contrary, firmer oil prices, Canada’s key export item, as well as the upbeat market sentiment tame the recovery moves.

Recently, chatters surrounding US President Joe Biden’s infrastructure spending package and fears of covid variants tease the pair sellers even as WTI steps back from multi-month high above $73.00. Additionally, the passage of Canadian Prime Minister Justin Trudeau’s budget bill, one step closer to become the law, also confuses the USD/CAD trader amid a quiet session.

It’s worth noting that the Fed policymakers, including Chairman Jerome Powell, gained support from US Treasury Secretary Janet Yellen to defend easy money policies. Also notable is the US Senators’ rush to finalize the details of the $1.2 trillion stimulus ahead of two-week-long holidays.

Against this backdrop, stock futures are mildly bid but the US Treasury yields struggle for clear direction by the press time.

Moving on, a light calendar in Canada highlights US Durable Goods Orders for May as the key catalyst of the day. However, major attention will be given to oil prices and Fedspeak, not to forget stimulus and covid headlines, for fresh impulse.

Read: US Durable Goods Orders May Preview: Is the consumer really absent?

Technical analysis

Wednesday’s Doji candlestick above 50-day EMA keeps USD/CAD buyers hopeful unless the quote drops below 1.2250. The recovery moves, however, will be questioned by 100-day EMA near 1.2400.

Our Source

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