USD/CAD has lost a further 15 pips....>

DOLLAR-CANADA: USD/CAD has lost a further 15 pips in the Asia-Pac session thus

far after dropping 25 pips yesterday, as oil extended its rally ahead of API and

EIA data. The latest API inventory estimate reportedly revealed a ~6.1mn bbl

fall in headline crude stocks, while the builds for both gasoline & distillates

topped exp, according to the same report. 

- CAD outperformed yesterday, even though initial impact of touted CAD/JPY

buying in Asian hours waned somewhat in the U.S. session. Worth mentioning CAD

remains the strongest performer of 2019 in the G10. 

- The rate has already breached yesterday's low, last C$1.3260, and

consolidation below would allow bears to target the cloud top at C$1.3232,

followed by the 100-DMA at C$1.3179. On the topside, initial attention is drawn

by yesterday's peak at C$1.3323 and a move through that level would open up the

50-DMA at C$1.3339. 

- The Bank of Canada will deliver its rate decision later today, with no policy

change expected. Elsewhere, Canadian housing starts are also due Wednesday,

while building permits come out Thursday.