USD/CAD clings to gains above 1.3000 handle after US releases
|Extending Friday's sharp reversal from 1.2830 region, the USD/CAD pair maintained its strong bid tone and is continued building on to its gains above 1.3000 psychological mark to currently trade around 1.3015-20 band after the release of US economic data.
Today’s economic data released from the US, namely Core PCE Price Index, Personal Income and Spending data for July were in-line with estimates and had a little impact on market expectations of an eventual Fed rate-hike action.
Meanwhile, softer tone surrounding crude oil prices is also weighing on the commodity-linked currency, the Canadian Dollar and helping the pair to build on to its break-out momentum above 100-day SMA strong resistance.
Moving ahead, market participants now shift their focus to this week's keenly watched macro indicator from the US, monthly jobs report, popularly known as NFP, in order to evaluate the possibilities of a September Fed-rate hike decision, which would provide an additional leg of up-move for the greenback and continue driving the major higher.
Technical levels to watch
From current levels, 200-day SMA near 1.3060-65 region seems is likely to act as immediate strong resistance above which the pair seems all set to extend its appreciating move beyond 1.3100 handle, towards testing monthly high resistance near 1.3190 level. On the flip side, weakness below 1.3000 handle, leading to a subsequent break below 1.2980 support, might now find strong support at 100-day SMA resistance break point near 1.2930-25 region.
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