USD/CAD looking to rebound from 1.2820
|- Canadian Dollar remains firm on Friday around 1.2840.
- USD stays offered post-tariffs on China, DXY in daily lows.
- Canadian CPI surpassed estimates, Retail Sales came in softer.
The Canadian Dollar keeps the positive note so far this week and is now forcing USD/CAD to navigate the area of weekly lows in the vicinity of 1.2840.
USD/CAD weaker on USD-selling, data
Spot quickly faded yesterday’s advance following the increasing selling bias surrounding the buck, particularly as consequence of the recently announced tariffs on US imports from China ($60 billion).
Concerns over the probability of a global trade war have been reignited soon after President Trump announced the new trade measures, impacting on the buck and the risk-associated universe.
Adding to CAD-buying, Canadian inflation figures tracked by the CPI showed headline consumer prices up 0.6% inter-month in February and 2.2% on a yearly basis. Additionally Core prices rose 0.7% MoM and 1.5% over the last twelve months.
Further releases in Canada saw headline Retail Sales expanding 0.3% MoM in January and sales excluding the Autos sector advancing 0.9%.
In the meantime, spot is navigating the lower end of the weekly range, trading at shouting distance from monthly lows in the 1.2800 neighbourhood (March 12) and extending the correction lower from fresh 2018 tops beyond 1.3100 the figure recorded earlier in the week (Monday).
USD/CAD significant levels
As of writing the index is losing 0.65% at 1.2855 and a breach of 1.2803 (low Mar.12) would expose 1.2722 (38.2% Fibo of the 2017 drop) and finally 1.2651 (200-day sma). On the other hand, the next up barrier is located at 1.2975 (10-day sma) seconded by 1.3126 (2018 high Mar.19) and finally 1.3195 (resistance line off 2016 top).
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