USD/CAD – The Loonie Gets Creamed by Lower Oil Prices and Risk-Off

The USD/CAD pair gapped in early Sydney trade, kicking up to a near 14-month high at 1.3599 with Oil prices set to fall further. Saudi Arabia was reported to have indicated it would raise its oil output to gain a higher market share. This was the result of a collapse in talks between OPEC led Middle East countries and non-OPEC countries led by the Soviet Union. On Friday, Brent Crude Oil prices plummeted 8.98% (USD 45.58 from USD 49.98). The Dollar closed at 1.3425 in New York Friday.

USD CAD - Daily Chart - Daily FX - 09 March 2020
USD CAD – Daily Chart – Daily FX – 09 March 2020

The Canadian economy created 30,300 jobs in February, beating forecasts of 11,000 and slightly lower than January’s 34,500 jobs. The Unemployment rate was steady at 5.6%, matching expectations. The Canadian Public Health Agency reported (as at March 8, 2020) that 64 cases of COVID-19 infections have been confirmed. No deaths have been reported. Which is less than the United States.

USD/CAD has immediate resistance at 1.3600 followed by 1.3630. Immediate support can be found at 1.3570 and 1.3530. Look for a choppy trading session with a likely range today of 1.3530-1.3630. Prefer to sell rallies.

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