USD/CAD halts BOC-led rebound amid higher Oil

The USD/CAD pair paused the relief-rally triggered by the BOC decision, and now attempts a minor-correction in response to higher oil prices.

USD/CAD back in the red below 1.2900

Currently, the USD/CAD pair drops 0.09% 1.2876, retreating slightly from session lows struck at 1.2866 earlier on the day. USD/CAD is seen extending the retreat from post-BOC highs reached at 1.2914, as the US dollar stalls its recovery and fell back into losses against its major peers.

Moreover, resumption of the uptrend in oil prices after a brief retreat in the last US session, also lends support to the resource-linked Loonie. Meanwhile, Brent rallies +1.63% to $ 48.76, while the US oil gains +0.41% to trade around $ 46.30 levels.

On Wednesday, USD/CAD rallied almost 1 big figure after the Canadian dollar slumped on Bank of Canada’s cautious comments, with the central bank highlighting downside risks to the economy. The BOC kept the interest rates unchanged at 0.50%.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.2905 (5-DMA) and 1.2983/84 (100 & 10-DMA). To the downside, immediate support might be located at 1.2800 (round figure) and below that at 1.2768 (Aug 19 low).