USD/CAD back to square one

FXStreet (Córdoba) - USD/CAD is back to square one after sliding to and bouncing back from below 1.3200 at the beginning of the New York session.

USD/CAD bottomed out at 1.3198 as the loonie strengthened in tandem with oil prices, but the CAD failed to sustain the advance and returned to the flat line afterwards. At time of writing, USD/CAD is trading at 1.3250, virtually unchanged on the day.

Latest string of US soft data failed to hurt the greenback as all eyes turn to the nonfarm payrolls report on Friday. ADP employment report came in slightly below expectations at 190K in August, while July factory orders rose 0.4%, well below the 0.9% expected.

EIA crude oil inventory data could offer some volatility to oil price and to the CAD amid global glut concerns.

USD/CAD levels to watch

In terms of technical levels, USD/CAD could find next resistances at 1.3277 (Sep 2 high), 1.3300/04 (psychological level/Aug 27 high) and 1.3326 (Aug 31 high). On the downside, supports are seen at 1.3223 (10-day SMA), 1.3200/1.3198 (psychological level/Sep 2 low) and 1.3117 (Sep 1 low).