Ella 
USD/CAD jumped short and opened higher on Wednesday to 1.3543, as the market maintained risk aversion and good U.S. data made the U.S. dollar (USD) fully sought after by the market. However, the surge in crude oil prices caused the Canadian dollar (CAD) to rise. USD/CAD The dollar will trade near the low 1.3450 mark during intraday trading on Thursday.
U.S. data continued to be better than expected, with U.S. durable goods orders increasing at a monthly rate of 0.2% in August, compared with expectations of -0.5%. The next U.S. data release will be gross domestic product on Thursday. U.S. second-quarter GDP is expected to be unchanged from the previous reading of 2.1%.
Canada’s July GDP data will be released on Friday, which is expected to rise from -0.2% to 0.1%, while the United States will release PCE price index data. The market generally predicts that the indicator will remain stable at 0.2% in August.
Although hawkish Fed officials and the prospect of a government shutdown supported the U.S. dollar index (DXY) to a new high, the greenback ultimately lost the tug of war with the oil-backed Canadian dollar.
Technical formations point to a surge in crude oil prices as tight crude supplies continue to squeeze the cost of barrels of crude to 13-month highs, with crude prices rising enough to keep the Canadian dollar in balance, taking USD/CAD back towards the 1.3500 mark.
