- USD/CAD extends the previous session’s losses on Tuesday.
- US Dollar Index fell near 93.00 amid improved risk appetite, delay in Fed’s taper talks.
- The Canadian dollar gained a strong rebound in oil prices.
The selling pressure in the US dollar pushes the USD/CAD pair on the lower edge during the initial Asian trading session on Tuesday.
At the time of writing, USD/CAD is trading at 1.2655, down 1.29% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against the six major currencies, losses track and slips near 93.00 in the wake of delayed Fed taper’s talk.
On the other hand, the Canadian dollar gained amid the sharp rebound in crude oil prices.
Oil prices currently rising almost 6% on the day at $65.50, which capped the downside for the loonie. Oil is one of Canada’s major export commodities.
The Canadian dollar was weighed down by the weaker Retail Sales data, which slightly missed expectations with a 4.2% rise in June.
As for now, traders are waiting for the US Existing Home Sales data to trade fresh trading impetus.