Forex - USD/CAD pulls away from 2-month high as oil pares losses

Forex Pros – The U.S. dollar eased off a two-month high against its Canadian counterpart on Wednesday, as crude oil, Canada’s largest export,  trimmed losses ahead of a U.S. government report on oil stockpiles.

USD/CAD pulled away from 0.9816, the pair’s highest since March 28, to hit 0.9767 during early U.S. trade, unchanged on the day.

The pair was likely to find support at 0.9696, the low of May 18 and short-term resistance at 0.9815, the day’s high.

Crude oil for delivery in July was down just 0.11% on the New York Mercantile Exchange, trading at USD99.44 a barrel, after clawing back up from a session low of USD98.20.

Raw materials, including oil account for about half of Canada’s export revenue.

Analysts expected a report from the Department of Energy to show that U.S. oil stockpiles declined by 1.2 million barrels last week. On Tuesday, the American Petroleum Institute, an industry group, said its own survey showed crude inventories fell by 860,000 barrels last week.

Meanwhile, the loonie was up against the euro, with EUR/CAD shedding 0.29% to hit 1.3733.

Earlier Wednesday, government data showed that U.S. durable goods orders slumped in April, posting the biggest drop in six months.

The Commerce Department said durable goods orders dropped 3.6% after an upwardly revised 4.4% rise in March. Analysts had expected orders to decline 2.2% last month.

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