USD/CAD through 1.2300 on CPI, retail sales
|The Canadian Dollar has given away part of its initial gains vs. its American neighbour on Friday, now lifting USD/CAD to the area above the key barrier at 1.2300 the figure.
USD/CAD trims gains on CPI, retail sales
After bottoming out in the 1.2260 area, the pair leapt beyond the 1.2300 handle following today’s lower-than-expected results from the Canadian docket.
In fact, key inflation figures in the Canadian economy showed headline consumer prices tracked by the CPI rising at an annualized 1.4% (vs. 1.5% forecasted) and 0.1% inter-month (vs. 0.2% initially estimated). Core prices gauged by the BoC rose 0.9% over the last twelve months and came in flat on a monthly basis.
Further data saw auspicious retail sales up 0.4% MoM, while sales excluding the Autos sector expanded 0.2% MoM, below prior surveys.
In the meantime, spot remains within the weekly familiar range for the time being, with gains finding strong resistance around post-FOMC spike to the 1.2400 neighbourhood.
USD/CAD significant levels
As of writing the pair is retreating 0.19% at 1.2304 facing the next support at 1.2256 (low Sep.22) seconded by 1.2236 (10-day sma) and then 1.2119 (low Sep.15). On the upside, a break above 1.2391 (high Sep.20) would aim for 1.2469 (23.6% Fibo of the 2017 drop) and finally 1.2508 (55-day sma).
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