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USD/CAD falls further below 1.4000 as USD weakens
The pair trades near 1.3877, having slid to levels last seen in early July, while technical signals point to oversold conditions.
USD/CAD extended its decline below 1.4000 and was trading around 1.3877, marking a third consecutive weekly loss, according to FXStreet.
The move reflects broad weakness in the US dollar and relatively stronger Canadian economic data, with higher oil prices adding support to the Canadian dollar.
FXStreet said expectations for US monetary policy have also shifted as moderating inflation, weaker consumer spending, and signs of labor market softness reduce the odds of a Federal Reserve rate hike next month.
Technically, the pair has moved below both the 50-day and 100-day simple moving averages, and an RSI(14) near 29 indicates oversold conditions, with nearby support cited around the 200-day SMA near 1.3850 and resistance near the 100-day SMA around 1.3920.