USD/CAD bounces to 1.3150 post-US data

Pablo Piovano FXStreet

The greenback is now trading on a firmer note vs. its Canadian neighbour, lifting USD/CAD to the mid-1.3100s.

USD/CAD bid after data

The pair is picking up pace as the buck is showing some signs of recovery following the release of US Retail Sales for the month of December.

In fact, headline sales have gained 0.6% on a monthly basis, a tad lower than initial estimates at 0.7%. On another direction, US Producer Prices have matched forecasts for the same period, while core prices have surprised to the upside.

CAD is deriving extra weakness from the selling mood around crude oil prices, with the barrel of West Texas Intermediate down nearly 1% to the $52.60 area ahead of the weekly report on US drilling activity by Baker Hughes.

Later in the session, US flash Consumer Sentiment is expected to improve to 98.5 for the current month.

USD/CAD significant levels

As of writing the pair is gaining 0.08% at 1.3154 facing the next hurdle at 1.3188 (high Jan.12) followed by 1.3275 (100-day sma) and then 1.3311 (38.2% Fibo of the 2016 drop). On the downside, a break below 1.3100 (200-day sma) would aim for 1.3028 (low Jan.12) and finally 1.3002 (low Oct.19).

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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