USD/CAD rebounds from lows after stronger US PPI
| • US producer prices rise at the fastest pace in 6 years.
• USD moves up after better PPI print and helps the pair to rebound.
• Bullish oil prices underpin Loonie and capping additional gains.
The USD/CAD pair trimmed some of its early losses and has managed recover around 30-pips from session lows.
The latest leg of sharp uptick over the past hour or so could be solely attributed to a modest US Dollar rebound following today's stronger-than-expected US PPI print for November, rising at the fastest pace in 6-years.
Against the backdrop of already stronger US Treasury bond yields, upbeat PPI figures, to some extent, seems to have eased concerns over stubbornly low inflationary pressure and provided a minor boost to the greenback.
Meanwhile, the prevalent bullish sentiment around crude oil prices continued underpinning the commodity-linked currency - Loonie and kept a lid on any subsequent up-move for the major.
Even from a technical perspective, the pair has been struggling to sustain its move beyond mid-1.2800s and hence, it would be prudent to wait for a strong follow-through traction before positioning for any additional up-move.
Technical levels to watch
A clear break through the mentioned hurdle, leading to a subsequent move beyond the 1.2865-70 region, is likely to accelerate the up-move towards the 1.2900 handle en-route 1.2915-20 heavy supply zone.
On the flip side, weakness below 1.2830 level might continue to find some buying interest near the 1.2800 handle, below which the pair is likely to head towards testing 1.2765-60 horizontal support.
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