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Forex - USD/CAD advances to 2-day high amid risk aversion

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Forex Pros - The U.S. dollar climbed to a two-day high against its Canadian counterpart on Tuesday, as security fears following Sunday's killing of Al Qaeda leader Osama bin Laden sapped demand for riskier assets.

USD/CAD hit 0.9542 during early U.S. trade, the pair's highest since last Thursday; the pair subsequently consolidated at 0.9522, gaining 0.16%.

The pair was likely to find support at 0.9444, Monday's low and a multi-year low and resistance at 0.9575, the high of April 27.

Earlier in the day, the U.S. and Australia increased security at their embassies, while Interpol told its 188 member countries to be on "full alert" after U.S. President Barack Obama Sunday announced the killing of bin Laden in Pakistan.

Crude oil for delivery in June was down 0.49% on the New York Mercantile Exchange, to trade at USD112.55 a barrel, after peaking at USD113.19 earlier in the day.

The Canadian dollar often closely tracks movements in crude prices as oil is the nation's largest export.

The loonie was also lower against the euro, with EUR/CAD easing up 0.07% to hit 1.4106.

Later Tuesday, the U.S. was to release government data on factory orders.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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