USD/CAD sinks to lows near 1.3230 post-US data
|The greenback remains on the back footing vs. its Canadian peer at the beginning of the week, now dragging USD/CAD to fresh lows near 1.3230.
USD/CAD offered on weak data
Spot met further downside pressure after US durable goods orders surprised markets to the downside today. In fact, orders for long-lasting goods contracted at a monthly 1.1% in May and expanded 0.1% inter-month when excluding the Transportation sector.
Further news from the US docket saw the Chicago Fed National Activity index dropping to -0.26 in May.
CAD stays strong today following the better tone in crude oil prices, where the barrel of West Texas Intermediate is extending its decent recovery above the key $43.00 mark, or 3-day peaks. Recall that prices for the WTI bottomed out just above the $42.00 mark last week, recording fresh 7-month lows.
In the meantime, spot is fading part of Friday’s advance and trading close to fresh 4-month lows in the 1.3165/60 band seen earlier in the month, always vigilant on crude oil dynamics and the BoC, particularly after recent comments by C.Wilkins and Governor S.Poloz.
USD/CAD significant levels
As of writing the pair is retreating 0.31% at 1.3226 and a break below 1.3189 (low Jun.19) would aim for 1.3163 (low Jun.14) and finally 1.3007 (low Feb.16). On the other hand, the next up barrier is located at 1.3312 (23.6% Fibo of the May-June drop) seconded by 1.3341 (200-day sma) and then 1.3349 (high Jun.21).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.