USD/CAD refreshes session tops on softer Canadian CPI; weaker US retail sales capped gains
|- Canadian headline CPI print fell short of market expectations.
- Weaker US retail sales data failed to impress bullish traders.
The USD/CAD pair refreshed session tops, around the 1.3230 region post-US/Canadian macro data, albeit remained well within a broader trading range held since the beginning of this week.
Having shown some resilience below the 1.3200 round-figure mark, the pair managed to regain some positive traction on Wednesday and got a minor lift during the early North-American session following the release of softer-than-expected Canadian consumer inflation figures.
Softer Canadian CPI print offset by weaker US retail sales
In fact, the headline Canadian CPI came in to show a larger than expected drop of 0.4% in September and the yearly rate held steady at 1.9% as compared to an uptick to 2.1% expected, though a combination of factors kept a lid on any strong follow-through positive move.
The US Dollar remained depressed after the monthly retail sales figures fell short of consensus estimates and came in to show a fall of 0.3% as against a growth of 0.3% expected. This was accompanied by a weaker core retail sales and largely negated an upward revision of the previous month's readings.
Adding to this, a modest intraday pickup in Crude Oil prices, which tend to underpin demand for the commodity-linked currency – Loonie, further collaborated towards capping any meaningful upside for the major and warrant some caution before placing any aggressive bullish bets.
Technical levels to watch
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