USD/CAD has dropped 14 pips thus......>

DOLLAR-CANADA: USD/CAD has dropped 14 pips thus far and last sits at C$1.3376. 

- Worth noting that Canada granted bail to Huawei CFO, whose recent arrest has

been a bone of contention between Ottawa & Beijing, with China reportedly

arresting a former Canadian diplomat in possible retaliation yesterday. Warmer

tones from Trump re: U.S.-China trade matters is also lending some support to

risk in early Asia trade. 

- The rate edged lower Tuesday, with price action affected by gyrations in oil

prices, with WTI retaking the $52 level late on after following broader risk

appetite in NY hours. Reports alluding to a much larger than expected headline

crude draw in the latest weekly API oil inventory data helped put a bid in after

settlement. 

- The rate has broken below C$1.3379, where USD/CAD bottomed yesterday, and

bears look for consolidation & a fall through the Dec 10 hourly support at

C$1.3351, which would open up the Dec 10 low at C$1.3293. Conversely, bulls need

to retake yesterday's peak at C$1.3424 to regain some upside momentum.