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Forex - USD/CAD edges higher on OPEC meeting anticipation

Published 09/28/2016, 09:31 AM
© Reuters.  Greenback moves slightly higher vs. loonie in early trade
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Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Wednesday, as caution ahead of a highly anticipated meeting of major oil producers in Algeria weighed on the commodity-related Canadian dollar.

USD/CAD hit 1.3236 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3215, up 0.13%.

The pair was likely to find support at 1.3135, the low of September 26 and resistance at 1.3281, Tuesday’s high and a six-month peak.

The Canadian dollar weakened as hopes for a potential oil production freeze were still crushed following reports on Tuesday that differences between Saudi Arabia and Iran remained too wide to achieve a deal this week.

However, investors were looking to see what comes out of Wednesday’s meeting to measure the odds for a deal at the official OPEC meeting on November 30.

Also Wednesday, the U.S. Commerce Department said that durable goods orders remained unchanged last month, tcompared to expectations for a 1.4% decline. July’s orders were revised down to show an increase of 3.6% from a previously reported 4.4% gain.

Core durable goods orders, which exclude volatile transportation items, dropped 0.4% last month, in line with forecasts.

The loonie was lower against the euro, with EUR/CAD easing up 0.09% to 1.4820.

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