USD/CAD bounces off 1.2800 on US data
The greenback remains sharply lower vs. its Canadian neighbor in the first half of the week, with USD/CAD now finding some support in the 1.2800 area.
USD/CAD lower on USD, oil
Another day, another (big) drop in the pair, with CAD appreciating to the 1.2800 handle vs. the buck on the back of a persistent recovery of crude oil prices, mixed US results and a generalized offered bias in USD.
Prices for the barrel of West Texas Intermediate are hovering over the $46.00 mark today, posting gains for the fourth session in a row and extending the monthly rally from the low-$39.00s.
On the data front, US headline consumer prices have come in flat inter-month in July and rose 0.8% over the last twelve months. Core prices rose 2.2% YoY and 0.1% MoM, both prints coming in below estimates.
Further US data saw mixed results from the US housing sector, while Industrial/Manufacturing Production and Capacity Utilization have all expanded more than expected during last month.
USD/CAD significant levels
As of writing the pair is retreating 0.47% at 1.2862 and a break below 1.2799 (low Aug.16) would open the door to 1.2674 (low Jun.23) and finally 1.2651 (low Jun.8). On the upside, the initial hurdle aligns at 1.2978 (55-day sma) followed by 1.3078 (20-day sma) and then 1.3202 (high Aug.5).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
