USD/CAD jumps to 1.3300 handle after economic releases
|The USD/CAD pair's recovery momentum from session low picked-up pace following the release of Canadian trade balance and US macro data, lifting the pair back above 1.3300 handle.
During early NA session, the pair caught fresh bids after Canadian trade deficit shrunk more-than-expected, to $1.13 billion in October, down from $4.38 billion reported in October. Shrinkage in trade deficit could be attributed to a sharp drop in imports and pointed to weakening domestic demand, eventually weighing on the Canadian Dollar.
Adding to this, a sharp slide in crude oil prices, with WTI crude oil now trading with loss of over 2.0% near $50.60 level, is further denting demand for the commodity-linked currencies - like the Loonie.
From the US, non-farm labor productivity remained unchanged at 3.1% for Q3 (was expected to be revised higher to 3.3%), while international trade balance surged more-than-expected to $42.6 billion in October ($41.80 expected), but did little to hinder the pair's recovery from multi-week lows touched on Monday.
Next on tap would be factory orders data from the US, which is expected post a healthy 2.6% m-o-m growth during October and might attract further buying interest around the major.
Technical levels to watch
Immediate upside resistance is now pegged at 50-day SMA near 1.3325-30 region above which the pair is likely to retest 1.3355 (yesterday's high) before darting towards an important support break-point, now turned resistance, near 1.3400 round figure mark.
On the downside, 1.3270 now becomes immediate support, which if broken now seems to drag the pair below session low support near 1.3250 region, and below 1.3235 (yesterday's low), towards testing its next important support at 100-day SMA near 1.3200-1.3190 region.
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