- Loonie received some respite from the oil price recovery backed by the latest API stockpiles report, which showed a bigger-than expected drop in the crude reserves
- API said U.S. crude stockpiles fell 3.7 million barrels last week, with stocks at the Cushing, down almost 500,000 barrels
- Brent crude oil rose towards $50 a barrel on Wednesday as a drawdown in U.S. crude oil stocks outweighed the negative impact of weak economic manufacturing data from China
- CAD recovered losses and trades higher versus USD, USD/CAD hit fresh session lows near 1.3233
- Hourly cloud top at 1.3200 to provide support, breaks below could see the pair at 1.3180 levels
- USD/CAD is currently trading at 1.3243, with immediate resistance at 1.3298 (Daily High Sep 23) and support at 1.3220 (Daily Low Sep 22)
- Canada July retail sales data due 1230GMT in focus, retail sales are estimated to climb 0.7% in July, following a strong advance of 0.6% in June
- US Markit Mfg PMI also due later in the U.S. session cloud influence further direction in the pair
R1: 1.3298 (Daily High Sep 23)
R2: 1.3310 (Daily Highs Sep 7/8/11)
R3: 1.3325 (Daily High Sep 2)
Support Levels:
S1: 1.3220 (Daily Low Sep 22)
S2: 1.3200 (Psychological Level)
S3: 1.3183 (Kijun-Sen)
