Ella 
USD/CAD hit a nine-week low of 1.3541 in Asia on Wednesday and is currently trading below 1.3550. It fell after U.S. Federal Reserve Governor Christopher Waller’s easing remarks. Waller hinted that the Fed may not insist on keeping interest rates high if inflation continues to decline, which is likely to be one of the reasons for the downward pressure on the USD/CAD exchange rate.
The U.S. dollar retreated against its major peers despite mixed U.S. data. The U.S. housing price index (monthly rate) remained at 0.6% in September, beating expectations of 0.4%. The Conference Board’s consumer confidence index rose to 102.0 from the previous reading of 99.1 (revised 102.6). However, the Richmond Fed Manufacturing Index came in at minus 5, against expectations of plus 1.
In addition, higher crude oil prices have also increased the attractiveness of the Canadian dollar against the US dollar. At the time of writing, West Texas Intermediate (WTI) crude oil prices were hovering around $76.60 per barrel. The recovery in crude oil prices has gained momentum amid expectations of an upcoming meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+). Decisions taken during the meeting will have a significant impact on oil supply dynamics.
Saudi Arabia is expected to propose extending oil supply cuts by 1 million barrels per day into next year. Additionally, Russia may consider further supply cuts, potentially by 300,000 barrels per day.
Investors will now focus on the preliminary annualized value of U.S. third-quarter gross domestic product (GDP). The Beige Book released by the Federal Reserve will reflect the overall economic growth of the United States. On Thursday, Canada’s annualized GDP data will show the total value of all goods and services produced in the country in the third quarter.
