USD / CAD stabilizes around 1.2550, seems to close for the third day in a row higher

• USD / CAD rose to its highest level since July 28 at 1.2576 on Tuesday.
• WTI is trading deep in negative territory near $ 70.
• Canada’s Markit Manufacturing PMI fell to 56.2 in July.

The pair USD / CAD It gained traction early in the US session and reached its highest level in five days at 1.2576 before entering a consolidation phase. At the time of writing, the pair was up 0.35% on the day at 1.2552.

CAD weakens as crude prices plummet

Falling crude prices amid mounting concerns about the delta variant of the coronavirus crippling the recovery in energy demand weighed heavily on the commodity-sensitive loonie on Tuesday. A barrel of West Texas Intermediate (WTI), which fell below $ 70 for the first time in two weeks, was down 1.6% at the time of writing this report towards $ 70.35.

Meanwhile, data from Canada revealed that Markit’s Manufacturing PMI fell to 56.2 in July from 56.5 in June.

On the other hand, the dollar remains resilient against its main rivals and allows the market valuation of the CAD to drive the action of USD / CAD.

The US Census Bureau reported Tuesday that factory orders rose 1.5% monthly in June, beating the market’s expectation of a 1% increase. On a negative note, the IBD / TIPP economic optimism index fell to 53.6 in August from 54.3.

On Wednesday, the ADP job change and the US ISM services PMI will be seen for further momentum.

Technical levels to take into account