The US Dollar depreciated about 0.61% in value against the Canadian Dollar on Tuesday. The decline started after the US factory activity tumbled to more than 10-year low, sparking concerns that the fallout from the US-China trade war is spreading to the US economy.
However, after hitting the monthly support level at 1.3205 during the morning hours of Wednesday’s trading session, the currency pair made northern U-turn. Currently, the pair is testing the 50– hour SMA at 1.3238.
Technical indicators suggest that the currency exchange rate might edge lower during the following trading session.