FxWirePro: USD/CAD extends advance as falling oil prices pressures commodity-linked loonie

• USD/CAD extended its advance on Friday as falling oil prices weighed on the commodity-linked Canadian dollar.

• Brent crude prices fell more than 1% as expectations grew that negotiations between Iran and U.S. mediators could lead to a meaningful resolution of the six-month-old conflict.

•On the data front, new orders for U.S.-manufactured capital goods rose more than expected in August, while the previous month’s figure was revised sharply higher, pointing to another quarter of solid business spending as companies ramp up investment in artificial intelligence infrastructure..

• In a separate report, the University of Michigan’s Surveys of Consumers said its Consumer Sentiment Index edged up to 48.1 from the previous reading of 47.8, indicating a modest improvement in consumer confidence.

•Traders see ​a 65% chance that the Bank of Canada will hike ​interest rates by at least 25 basis points during the October meeting ‌to ⁠combat inflation,.

 •  Immediate resistance is located at 1.4207(23.6%fib), any close above will push the pair towards 1.4220(Higher BB).

• Support is seen at 1.4114(38.2%fib) and break below could take the pair towards 1.4038(38.2%fib).

Recommendation: Good to sell around 1.4120 with stop loss of 1.4050  and target price of 1.4200