USD/CAD faces pressure as OPEC+ boosts oil production by 548K bpd

USD/CAD is experiencing downward pressure following OPEC+'s decision to increase oil production by 548,000 barrels per day for September, as crude oil prices react to the anticipated supply increase. The production hike, while widely expected, reinforces the group's commitment to unwinding previous production cuts implemented during the pandemic. Higher oil production typically weakens oil prices, which could initially seem bearish for the Canadian dollar. However, Canada's position as a major oil exporter means increased global production often stimulates overall energy market activity, potentially benefiting CAD through increased trade volumes. The loonie has shown resilience against the US dollar, with USD/CAD testing support near 1.3650. Technical indicators suggest further downside potential if oil markets stabilize above $80/barrel. Traders should monitor upcoming Canadian employment data and any shifts in Federal Reserve policy expectations, as these factors could significantly influence the pair's trajectory in the near term.