- USD / CAD is trading with modest losses, testing 1.3200.
- WTI posts daily earnings to help CAD stay resilient against rivals.
- The US dollar index is down towards 93.00 amid the risk flows.
USD / CAD rose to a daily high of 1.3240 on Tuesday but reversed direction ahead of the US session. At the time of writing, the pair was down 0.12% on the day at 1.3200.
Rising Crude Oil Prices Support CAD
After falling to its lowest since January at 1.3132 on Monday, the USD / CAD rebounded strongly in the second half of the day and closed in positive territory. Widespread strength in the USD and a late pullback in crude oil prices helped the pair push higher.
The easing of US-China geopolitical tensions boosted market confidence and allowed risk-sensitive crude oil prices to rise on Tuesday. With West Texas Intermediate (WTI) gaining nearly 1% per barrel to trade at $ 42.75, the commodity-linked loonie remains strong against its peers. The American Petroleum Institute will release its weekly crude oil inventory data at 2030 GMT.
Meanwhile, the US dollar index (DXY) remains lower as the greenback struggles to gain investor attention as a safe haven. For now, the DXY is down 0.25% on the day to 93.06. Later today, the Conference Board will release its data on consumer confidence in the United States. Other data from the United States will include new home sales and the Richmond Fed’s manufacturing index.
On the other hand, the Deputy Governor of the Bank of Canada (BoC), Lawrence Schembri, is due to deliver a speech at 17:30 GMT.