Investing.com – The U.S. dollar tumbled to a 2-month low against its Canadian counterpart on Tuesday, as crude oil prices surged on the back of broadly weaker U.S. dollar.
USD/CAD hit 1.0153 during European afternoon trade, the pair’s lowest since August 6, the pair subsequently consolidated at 1.0160, tumbling 0.72%.
The pair was likely to find support at 1.0106, the low of August 5 and resistance at 1.0312, last Thursday’s high.
Earlier in the day, crude oil prices jumped 0.82% to trade at USD 82.33 a barrel after the Bank of Japan's decision to cut interest rates to near zero and embark on a monetary easing program weakened confidence in currencies and gave a boost to commodities.
The loonie often tracks changes in crude oil prices as Canada is the largest supplier of foreign crude oil to the U.S.
Meanwhile, the loonie was down against the euro, with EUR/CAD gaining 0.36% to hit 0.4063.
Earlier Tuesday, the U.S. Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 53.2 in September, after falling to 51.5 in August. Analysts had expected the index to advance to 51.8 in September.
USD/CAD hit 1.0153 during European afternoon trade, the pair’s lowest since August 6, the pair subsequently consolidated at 1.0160, tumbling 0.72%.
The pair was likely to find support at 1.0106, the low of August 5 and resistance at 1.0312, last Thursday’s high.
Earlier in the day, crude oil prices jumped 0.82% to trade at USD 82.33 a barrel after the Bank of Japan's decision to cut interest rates to near zero and embark on a monetary easing program weakened confidence in currencies and gave a boost to commodities.
The loonie often tracks changes in crude oil prices as Canada is the largest supplier of foreign crude oil to the U.S.
Meanwhile, the loonie was down against the euro, with EUR/CAD gaining 0.36% to hit 0.4063.
Earlier Tuesday, the U.S. Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 53.2 in September, after falling to 51.5 in August. Analysts had expected the index to advance to 51.8 in September.