USD/CAD renews 2019 lows below 1.3000 on last trading day of year
- Year-end flows continue to weigh on USD in early American session.
- Commodity-sensitive CAD ignores falling crude oil prices on Tuesday.
- US economic docket features Housing Price Index and CB Consumer Confidence Index.
The USD/CAD pair posted heavy losses in the last hour as year-end flows cause sharp reactions in illiquid markets. After touching its lowest level of the year at 1.2990, the pair recovered slightly and was last seen trading near 1.3000, erasing 0.5% on a daily basis.
USD selloff intensifies
The USD seems to be feeling the most pressure from investors' position readjustment on New Year's Eve. The US Dollar Index, which erased nearly 1% since the day after Christmas, is now down 0.33% on the day at 96.42, the lowest reading in nearly six months.
On the other hand, the barrel of West Texas Intermediate is losing 0.7% on a daily basis. However, the fact that this drop also seems to be the end result of profit-taking allows the commodity-sensitive CAD to ignore it.
Later in the session, the Conference Board's Consumer Confidence Index will be looked upon for fresh impetus but participants are unlikely to make any large bets on this data in the last trading hours of 2019.
Technical levels to watch for