USD/CAD jumps above 1.33 on dismal Canadian manufacturing sales data
|- Canadian manufacturing sales decline for the third straight month in December.
- Retail sales in the U.S. decrease 1.2% to miss the market expectation by a wide margin.
- US Dollar Index drops to 97 area after disappointing data.
The USD/CAD pair gained traction in the last hour and rose to a fresh daily high above the 1.33 mark as the loonie came under heavy selling pressure following the disappointing manufacturing sales data. As of writing, the pair was trading at 1.3313, adding 0.46% on the day.
Statistics Canada today reported that manufacturing sales declined 1.3% in December after falling 1.7% in November and missed the market expectation for an increase of 0.2% to weigh on the CAD. "Sales fell in 12 of 21 industries, representing 72.7% of manufacturing sales," Statistics Canada said in the publication.
On the other hand, retail sales in the U.S. contracted 1.2% on a monthly basis in December and the annual PPI slumped to 2% in January from 2.5% in December, both readings falling short of analysts' estimates. The US Dollar Index, which rose to its highest level since mid-December at 97.30 today, lost its traction and was last seen down 0.17% on the day at 97.03. The bearish pressure surrounding the USD is keeping the pair's gains limited for now.
Meanwhile, after Russian energy minister Novak said that OPEC+ was not planning to introduce new output cut proposals in light of Venezuela and forced crude oil prices to pull away from $54 handle. At the moment, the WTI is trading at $53.55, losing 0.7% on a daily basis.
Technical levels to consider
The pair could face the first resistance at 1.3345 (50-DMA) ahead of 1.3375 (Jan. 24 high) and 1.3420 (Dec. 17 high). On the downside, supports are located at 1.3230 (daily low), 1.3195 (Feb. 14 low) and 1.3120 (Jan. 30 low).
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