USD/CAD bounces off lows on CPI, Retail Sales

Pablo Piovano FXStreet

The Canadian Dollar stays on the firm note on Friday, now taking USD/CAD to the 1.3585/90 band after a brief test of daily lows near 1.3550.

USD/CAD remains negative on data

The pair saw its decline accelerated after Canadian inflation figures tracked by the CPI rose less than expected 1.6% on an annualized basis (vs. 1.7% forecasted) and 0.4% inter-month during last month.

Further data saw Core CPI measured by the Bank of Canada rising 1.1% over the last twelve months and coming in flat on the monthly gauge.

In addition, headline Retail Sales expanded at a monthly 0.7% in March, surpassing estimates, while sales excluding the Autos sector contracted 0.2%.

The pair’s downside remain well and sound on the back a renewed and strong pick up in the selling interest around the buck, while higher crude oil prices continue to lend oxygen to CAD.

USD/CAD significant levels

As of writing the pair is losing 0.12% at 1.3786 and a break below 1.3554 (low May 19) would open the door to 1.3508 (50% Fibo of the April-May rally) and finally 1.3480 (55-day sma). On the flip side, the next up barrier is located at 1.3649 (20-day sma) seconded by 1.3659 (23.6% Fibo of the April-May rally) and then 1.3671 (high May 18).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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