USD/CAD finds support near 1.3270, rebounds above 1.33 as WTI drops below $56
- WTI erases daily gains, drops below $56 in early NA session.
- Real GDP in US expands by 2% in second quarter as expected.
- US Dollar Index touches fresh six-day high above 98.30.
Ths USD/CAD pair dropped to a fresh session low 1.3271 in the early trading hours but quickly reversed its direction after finding support there. As of writing, the pair was trading at 1.3310, adding 0.04% on a daily basis.
US economy stays healthy in Q2
Earlier today, the US Bureau of Economic Analysis in its second estimate said that the real gross domestic product (GDP) in the second quarter expanded by 2%. Although this reading came in slightly lower than the previous estimate of 2.1%, it matched analysts' estimates and helped the Greenback preserve its strength. As of writing, the US Dollar Index was at its highest level in nearly a year at 98.35, rising 0.16% on the day.
Meanwhile, "Canada's current account deficit (on a seasonally adjusted basis) narrowed by $10.2 billion to $6.4 billion in the second quarter, the lowest level since Canada returned to a deficit position at the end of 2008," Statistics Canada announced today.
On the other hand, after climbing to a daily high of $56.40, the barrel of West Texas Intermediate lost its traction and turned red below the $56 mark, providing an additional lift to the pair by making it hard for the commodity-related Loonie to find demand.
Technical levels to watch for