USD/CAD managed to settle below the support at the 20 EMA as oil markets tested weekly highs.
The Canadian dollar strengthened for a third straight day against its U.S. counterpart on Tuesday as the easing of COVID-19 restrictions in China bolstered investor sentiment. Global shares were higher and the price of oil, one of Canada's major exports, rose following China's decision to ease some quarantine requirements for international arrivals, a move that raised hopes for stronger growth and a revival in demand for commodities. U.S. crude prices advanced 1.3% to $110.98 a barrel, while the Canadian dollar was trading 0.3% higher at 1.2844 to the greenback, or 77.86 U.S. cents.
TORONTO (Reuters) -The Canadian dollar was little changed against its U.S. counterpart on Monday, holding on to its gains from Friday, as the recent pullback in commodity prices and bond yields bolstered investor sentiment. Canadian Finance Minister Chrystia Freeland on Sunday said the economy still has a path to a "soft landing," where it could stabilize economically after the blow by the COVID-19 pandemic, without facing a severe recession that many fear. The Canadian dollar was trading nearly unchanged at 1.2896 to the greenback, or 77.54 U.S. cents, after touching its strongest level since June 16 at 1.2865.