Daily Afternoon Report 06.04.2016
The U.S. dollar edged up against its Canadian counterpart on Wednesday, as sentiment on the greenback improved ahead of the minutes of the Federal Reserve’s March meeting minutes, although higher oil prices lent support to the Canadian currency.
USD/CAD hit 1.3187 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3161, adding 0.20%.
The pair was likely to find support at 1.3003, the low of April 4, and resistance at 1.3286, the high of March 28.
The greenback found support after the Institute of Supply Management said on Tuesday that its non-manufacturing purchasing manager’s index improved to 54.5 last month from 53.4 in February.
But gains were limited as data also showed that the U.S. trade deficit widened to $47.06 billion in February from $45.88 billion in January.
Investors were eyeing the minutes of the Fed’s March meeting due later Wednesday, for fresh indications on the future path of interest rates.
Meanwhile, the commodity-related Canadian dollar found some strength as oil prices rebounded after hitting one-month lows on Tuesday.
The loonie was higher against the euro, with EUR/CAD shedding 0.23% to 1.4987.