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Forex - USD/CAD dips to daily low as crude oil edges higher

Published 02/09/2011, 09:21 AM
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Investing.com – The U.S. dollar was slightly lower against its Canadian counterpart on Wednesday, as the price of crude oil, Canada’s largest export, edged higher in quiet trade.

USD/CAD hit 0.9932 during European afternoon trade, the daily low; the pair subsequently consolidated at 0.9936, dipping 0.15%.

The pair was likely to find support at 0.9867, Tuesday’s low and short-term resistance at 0.9977, Tuesday’s high and a one-week high.

Earlier in the day, crude oil prices edged up 0.24% to hit USD 87.33 a barrel. The Canadian dollar closely tracks changes in crude oil prices as Canada is a major supplier of crude oil to the U.S.

On Tuesday, crude oil prices tumbled more than 1% after China raised interest rates for the second time in six weeks, amid intensifying efforts to curb spiraling inflation and ward off a property bubble.

Meanwhile, the loonie was down against the euro, with EUR/CAD easing up 0.02% to hit 1.3588.

Later in the day, the head of the U.S. Federal Reserve, Ben Bernanke was to testify before the Budget Committee in Washington.


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