Oil inventories miss estimates as USD volatility impacts commodity FX pairs

US crude oil inventories declined by 1.812 million barrels, falling short of the expected 2.310 million drawdown, while gasoline stocks surged 6.397 million barrels, significantly exceeding the 2.764 million estimate. The mixed energy data has created volatility in commodity-linked currencies, with USDCAD trading near 1.4180 as oil prices remain under pressure. AUDUSD and NZDUSD showed limited reaction, holding near 0.6380 and 0.5820 respectively, as traders focus on broader dollar dynamics ahead of the Federal Reserve meeting. The larger-than-expected gasoline build suggests weaker demand conditions, potentially weighing on inflation expectations and supporting dovish Fed sentiment. Technical indicators show USDCAD facing resistance at 1.4200, while support emerges at 1.4150. Energy market dynamics remain crucial for commodity currencies, with further inventory builds likely to pressure CAD, AUD, and NZD against the greenback.