USD/CAD hangs near weekly lows ahead of macro data
| • Weaker oil prices largely negating USD softness.
• Traders await important releases for fresh directional impetus.
The USD/CAD pair struggled to gain any strong traction and remained within striking distance of weekly lows touched in the previous session.
A modest US Dollar rebound helped the pair to find some support near the 1.2820 region. This coupled with a mildly softer tone around crude oil prices further collaborated to the pair's uptick through the European trading session.
Traders, however, seemed lacking conviction and refrained from placing aggressive bets ahead of important macro releases, which could possibly lead to some action ahead of the Christmas holidays.
Today's Canadian macro data - Consumer Price Index (CPI) and Retail Sales, would influence market expectations for further policy normalization by the BoC and might eventually help the pair to break through its near-term trading range.
From the US, the final US GDP growth figures, along with the release of Philly Fed Manufacturing Index and initial jobless claims might also infuse some volatility in a rather quiet end of the year trading action.
Technical levels to watch
Weakness below 1.2820 level might get extended towards 1.2765 intermediate support before the pair eventually drops to the 1.2700 handle ahead of 1.2675-70 important support.
On the flip side, 1.2860 level is likely to act as immediate resistance, above which the pair could aim to surpass the 1.2900 handle and aim towards testing the very important 200-day SMA hurdle near the 1.2925-30 region.
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