The Canadian dollar has quickly surrendered initial gains vs. its neighbour today, sending USD/CAD to fresh highs above the 1.3100 handle.
USD/CAD higher on poor data
Spot met extra buying pressure after Canadian inflation figures tracked by the CPI have come in short of expectations, rising 1.1% on a year to August and contracting 0.2% on a monthly basis.
Further data saw core prices gauged by the Bank of Canada coming in flat inter-month and rising 1.8% over the last twelve months.
Canadian Retail Sales have contracted at a monthly 0.1% MoM in July and 0.1% stripping the Autos sector, all readings coming in below initial estimates.
Adding to CAD-weakness, the barrel of the West Texas Intermediate remains in the negative territory, shedding 0.40% near the $46.00 mark.
Later in the day, USD will take centre stage as FOMC’s Harker, Lockhart and Mester are due to speak.
USD/CAD significant levels
As of writing the pair is up 0.62% at 1.3123 and a breakout of 1.3249 (high Sep.16) would open the door to 1.3253 (high Jul.27) and finally 1.3311 (38.2% Fibo of the 2016 drop). On the other hand, the next support aligns at 1.2996 (low Sep.22) ahead of 1.2818 (low Sep.7) and then 1.2759 (low Aug.18).
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