By Ketki Saxena
Investing.com -- The Canadian Dollar continued to weaken against its US counterpart today, amongst the worst-performing major currencies, pressured by falling crude prices on worries of a global economic slowdown and fears of demand destruction for the commodity.
Meanwhile, the US Dollar moderated against a basket of major currencies as bond yields stabilized.
The easing in yields was supported by US ADP (NASDAQ:ADP) data that showed private payrolls came in well below consensus, and marked their lowest level since January 2021.
On a technical level for the pair, analysts at FX Street note, "On the daily candlesticks, the USD/CAD is extending gains from the 20-day Simple Moving Average, which saw a bullish rejection of the pair near 1.3450 back in September. Odds of a short-side reversal could be on the cards for the USD/CAD, with the Relative Strength Index (RSI) now tapping into overbought territory."
Despite the dollar's dominance over the loonie in recent days, Rabobank analysts see the USD/CAD pair trading largely rangebound for the remained of the year.
They note, "For several months, we have been highlighting the 1.35 ‘magnet’ in USD/CAD, and as we head into the last quarter of the year, we maintain the view that USD/CAD will likely stay range-bound around that level."
"The bulk of price action has seen the pair trading within the 1.33 to 1.37 range, and we don’t expect that to break for the remainder of the year. In fact, our forecast is essentially flat, with 1.35 continuing to act as a magnet."