USD/CAD rises toward 1.2750 after US and Canadian data, before FOMC minutes
|- Canadian dollar down versus US dollar, still outperforming among commodity currencies.
- USD/CAD finds support above 1.2715, holds a bullish tone.
The USD/CAD rose to 1.2746, reaching the highest level in three days, after the beginning of the American session, amid a stronger US dollar following the release of US economic data. The pair then pulled back finding support around 1.2720.
US and Canadian data surpass expectations
Retail sales rose by almost 6% in January surpassing expectations (+0.8%) in the US. In another report, the Producer Price Index showed a larger-than-expected increase of 1.3% in January. The greenback gained momentum after the number and rose across the board, reaching fresh highs.
In Canada, the Consumer Price Index also showed higher-than-expected numbers for January (0.6% vs 0.4%). Those favored the loonie and kept gains in USD/CAD limited. Despite falling against the US dollar, the Loonie (CAD) is up versus AUD and NZD.
Short-term levels
Form a technical perspective, the bias in USD/CAD continues to point to the upside. The immediate barrier is located at 1.2750. A consolidation above would add more strength to the dollar. The next resistance stands at 1.2765.
A decline under 1.2715 would alleviate the bullish pressure. The next support levels might be seen at 1.2685, followed by 1.2660.
Technical levels
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