Oil pares gains on an unexpectedly large rise in U.S. inventory levels, but set for largest 1-week rise since Aug
- U.S. crude stocks rose by 3.1 mln barrels to 461 mln last week as refineries cut output and idled capacity, expectation was for a rise of 2.2 mln barrels
- Underpinning the crude complex was a drop in the dollar ahead of the FOMC minutes, which may offer some insight into the outlook for interest rates
- USD/CAD was largely rangebound on the day, currently trading at 1.3033, day's range 1.3021/3071
- Canadian Housing Starts are due ahead followed by the weekly report on the US labour market
- Later in the day, the FOMC minutes will take centre stage along with speeches by Bullard, Kocherlakota and Williams
Resistance Levels:
R1: 1.3052 (session highs Oct 7th)
R2: 1.3111 (55 EMA)
R3: 1.3134 (Daily High Oct 6)
Support Levels:
S1: 1.2992 (Session Low Oct 7)
S2: 1.2952 (Daily low Aug 12)
S3: 1.2944 (Daily Low Jul 30)
