USD/CAD at daily lows as oil bounces after inventory data

USD/CAD turned south and made fresh lows for the day during the American afternoon, after EIA report on oil inventories, helped to underpin WTI and therefore the Canadian dollar.

Oil prices recovered above the $40.00 mark as a sharp, unexpected, gasoline draw offset an increase in crude oil inventories.

USD/CAD initially moved up, but quickly fell over half a cent to score a low of 1.3066, where the 20-day SMA offered support. At time of writing, the pair was trading at 1.3078, down 0.24% on the day.

Fitch affirms Canada at AAA

On Wednesday, Fitch Ratings affirmed Canada at 'AAA' with a stable outlook citing an advanced, well diversified and high income economy.

USD/CAD technical levels

In terms of technical levels, next supports could be found at 1.3004/00 (Aug 2 low/Jul 29 low/psychological level), 1.2973 (50-day SMA) and 1.2945 (100-day SMA).  On the other hand, immediate resistances are seen at 1.3147 (Aug 3 high), 1.3185 (Jul 29 high) and 1.3253 (Jul 27 high).