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Forex - USD/CAD soars to 5-day high as crude oil tumbles

Published 10/27/2010, 11:02 AM
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Investing.com – The U.S. dollar soared to a 5-day high against its Canadian counterpart on Wednesday, as crude oil prices tumbled in the wake of official data which showed that U.S. stockpiles rose significantly more-than-expected last week.

USD/CAD hit 1.0335 during European afternoon trade, the pair’s highest since October 20; the pair subsequently consolidated at 1.0318, soaring 0.79%.

The pair was likely to find support at 1.0180, Tuesday’s low and resistance at 1.0373, the high of October 19.

Earlier in the day, crude oil prices tumbled 2.31% to hit a 3-day low of USD.80.78 a barrel.

The steep decline came after a report by the U.S. Energy Information Administration which showed crude oil stockpiles rose by 5 million barrels in the week ending October 22, after rising by 0.7 million barrels in the preceding week. Analysts had expected oil stores to rise by 1.1 million barrels last week.

Canada is one of the largest foreign suppliers of crude oil to the U.S.

The loonie was also down against the euro, with EUR/CAD gaining 0.30% to hit 1.4234.

Also Wednesday, official data showed that U.S. new home sales rose more-than-expected in September. Meanwhile, a separate report showed that U.S. core durable goods orders fell unexpectedly in September while durable goods orders rose more-than-expected.

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