Canadian Dollar declines after September US JOLTS

• USD/CAD holds its position above 1.3900, close to its three-month high recorded on Monday.
• Oil prices fall sharply as limited military operations alleviate fears of an all-out war in the Middle East.
• US Dollar strengthens as strong housing figures seem to outshadow soft JOLTs data.

The USD/CAD pair continues to gain traction on Tuesday with the quote rising by 0.23% to 1.3910 at the time of writing. The pair is trading near its three-month high of 1.3908 recorded on Monday and has been supported by a combination of factors, including the USD's strength and a decline in oil prices.

The Greenback has been strengthening in recent weeks on the back of positive economic data, which has bolstered expectations for interest rate cuts by the Federal Reserve (Fed) in November. US JOLTs data from September came in mixed but somewhat below consensus. On the other hand, several home price indices from August beat expectations, demonstrating continued strength in shelter inflation.

Daily digest market movers: Canadian Dollar pressured by lower Oil prices

• WTI Oil price hovers around $67.50, weighing on the commodity-linked CAD as Canada is a major oil exporter.
• Iran's response to Israeli military actions could further impact oil prices and CAD. However, the lack of response to Israel's weekend missile strikes has reduced market anxiety.
• BoC Governor Macklem explains that the recent aggressive rate cut was justified, considering previous inflation-fighting hikes.
• BoC aims to find the neutral rate that balances economic stimulation and restraint.
• On the US side, JOLTS Job Openings declined to 7.44 million in September, falling short of market estimates. Hires and total separations in the US economy remained stable, while quits and layoffs showed minimal changes.
• Markets await the Nonfarm Payrolls report from September to be released on Friday. Gross Domestic Product (GDP) revisions on Wednesday will also be important.

AUD/USD technical outlook: Bullish momentum steady despite overbought RSI

The Relative Strength Index (RSI) is currently at 79, indicating that the pair is heavily overbought. The RSI's slope is rising sharply, suggesting that buying pressure is rising. The Moving Average Convergence Divergence (MACD) is green and rising, suggesting that buying pressure is increasing. The overall technical outlook is bullish, but a correction is still possible.

Key support levels are at 1.3870, 1.3850 and 1.3830, while resistance levels are at 1.3900, 1.3915 and 1.3930.