{"id":139063,"date":"2023-09-02T02:28:33","date_gmt":"2023-09-01T20:58:33","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=139063"},"modified":"2023-09-02T02:28:33","modified_gmt":"2023-09-01T20:58:33","slug":"usd-cad-stalled-after-a-four-day-rally-spurred-by-risk-aversion-on-chinas-economic-woes-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/usd-cad-stalled-after-a-four-day-rally-spurred-by-risk-aversion-on-chinas-economic-woes-crypto-news\/","title":{"rendered":"USD\/CAD stalled after a four-day rally, spurred by risk-aversion on China\u2019s economic woes &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div id=\"fxs_article_content\">\n<p>\n                        <span class=\"fxs_socialmedia_bar_share_label\">Share:<\/span><\/p>\n<ul>\n<li><strong>USD\/CAD advances 0.05% to 1.3551, buoyed by investor concerns over China\u2019s shadow bank and real estate crises.<\/strong><\/li>\n<li><strong>US retail sales exceed expectations, supporting the Fed\u2019s stance on maintaining restrictive monetary policy.<\/strong><\/li>\n<li><strong>Canadian July Producer Prices rebound with a 0.4% rise, driven by surges in oil and lumber prices.<\/strong><\/li>\n<\/ul>\n<p>USD\/CAD prepares to finish the week on a higher note, with gains of 0.84%, extending its rally to five straight days but remains unable to claim the 1.3600 figure. Risk aversion continues to take its toll on global <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/markets\/equities\">equities<\/a>, sparking flows to safe-haven assets. Hence, the USD\/CAD is almost flat, exchanging\u00a0hands at 1.3545.<\/p>\n<h2 class=\"fxs_headline_medium\">Evergrande\u2019s bankruptcy and China\u2019s economic downturn bolster the greenback, while Canadian Producer Prices show recovery<\/h2>\n<p>The pair extended its gains on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/technical-analysis\/sentiment\/risk-appetite\">risk aversion<\/a>, as investors weighed China\u2019s economic woes. Recent data revealed the second-largest economy is deteriorating. At the same time, the shadow bank crisis and real estate turmoil escalated after Thursday\u2019s news that Evergrande filed for Chapter 15 bankruptcy in New York.<\/p>\n<p>The US economic docket was light, but recent data showed that <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/economic-calendar\/united-states\">retail sales<\/a> pushing above estimates and a robust labor market justifies the Federal Reserve\u2019s (Fed) need to keep monetary policy at restrictive levels. The latest monetary policy meeting minutes emphasized the Fed\u2019s commitment to bring inflation towards its 2% target, though some officials began to be cautious about upcoming meetings.<\/p>\n<p>In the meantime, the Canadian economic calendar revealed that July Producer Prices rose by 0.4%, exceeding June\u2019s -0.6% plunge, underpinned by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/markets\/commodities\/energy\/oil\">oil<\/a> and lumber prices. Raw materials prices rose 3.5% in July but remained down 11.1% in the year.<\/p>\n<p>The USD\/CAD remained on the front foot, but a late uptick in oil prices shifted the USD\/CAD negative. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/currencies\/us-dollar-index\">The US Dollar Index<\/a> (DXY), a gauge of the greenback\u2019s value against a basket of six currencies, hovered around two-month highs but retraced to 103.389, almost flat. The US Treasury bond yields pare some of its losses, with the US 10-year Treasury note yielding 4.239%, down four bps.<\/p>\n<h3 class=\"fxs_headline_medium\">What to watch?<\/h3>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/editorial.fxstreet.com\/miscelaneous\/image-638279748125203159.png\"><\/a><\/p>\n<h3 class=\"fxs_headline_medium\">USD\/CAD Price Analysis: Technical outlook<\/h3>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/editorial.fxstreet.com\/miscelaneous\/image-638279747690262412.png\"><img decoding=\"async\" src=\"https:\/\/editorial.fxstreet.com\/miscelaneous\/image-638279747690262412.png\" style=\"width: 1089;height: 594\" \/><\/a><\/p>\n<p>The USD\/CAD bias remains upward as price action cleared the 200-day Moving Average (DMA) at 1.3451, though it faltered to clear the May 30 daily low turned resistance at 1.3567, which once reclaimed, as the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/currencies\/usdcad\">USD\/CAD<\/a> pair would rally towards the May 26 swing high at 1.3654. If that level is cleared, the year-to-date (YTD) high would be up for grabs at 1.3862.<\/p>\n<p>\u00a0<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Share: USD\/CAD advances 0.05% to 1.3551, buoyed by investor concerns over China\u2019s shadow bank and real estate crises. US retail sales exceed expectations, supporting the Fed\u2019s stance on maintaining restrictive monetary policy. Canadian July Producer Prices rebound with a 0.4% rise, driven by surges in oil and lumber prices. USD\/CAD prepares to finish the week [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":12745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,276,255,250,277,252,247,253,249,498,256,254],"class_list":["post-139063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-currencies","tag-gta","tag-looks-rare","tag-majors","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-usdcad","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/139063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=139063"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/139063\/revisions"}],"predecessor-version":[{"id":147863,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/139063\/revisions\/147863"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/12745"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=139063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=139063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=139063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}