USD/CAD drops to daily lows near 1.2100 after US and Canada data

USD/CAD extends its daily slide in the early American session.
US Dollar Index stays below 90.50 after uninspiring Retail Sales data.
Manufacturing Sales in Canada increased sharply in March.

Eren Sengezer FXStreet

The USD/CAD pair came under renewed bearish pressure in the early trading hours of the American session and dropped to a daily low of 1.2098. As of writing, the pair was losing 0.5% on the day at 1.2100.

CAD capitalizes on upbeat Canadian data

The data from the US showed on Friday that Retail Sales in April stayed unchanged at $619.9 billion in April. This reading missed the market expectation for an increase of 1% and made it difficult for the greenback to gather strength against its rivals. At the moment, the US Dollar Index is down 0.3% at 90.45.

Additionally, Industrial Production in the US increased by 0.7% in April, falling short of analysts' estimate of 1%.

On the other hand, Statistics Canada reported that Manufacturing Sales and Wholesale Sales in Canada rose by 3.5% and 2.8%, respectively, in March. Moreover, the barrel of West Texas Intermediate (WTI) is up more than 1% on the day at $64.50, helping the commodity-related loonie to continue to find demand.

Later in the session, the University of Michigan's Consumer Sentiment Index will be the last data release of the week from the US.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2103
Today Daily Change	-0.0060
Today Daily Change %	-0.49
Today daily open	1.2163

Trends
Daily SMA20	1.2323
Daily SMA50	1.2462
Daily SMA100	1.2588
Daily SMA200	1.285

Levels
Previous Daily High	1.2203
Previous Daily Low	1.2104
Previous Weekly High	1.2352
Previous Weekly Low	1.2122
Previous Monthly High	1.2654
Previous Monthly Low	1.2266
Daily Fibonacci 38.2%	1.2165
Daily Fibonacci 61.8%	1.2142
Daily Pivot Point S1	1.211
Daily Pivot Point S2	1.2058
Daily Pivot Point S3	1.2011
Daily Pivot Point R1	1.2209
Daily Pivot Point R2	1.2256
Daily Pivot Point R3	1.2308

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

AUD/USD climbs toward 0.7000 after strong China data dump

AUD/USD attracts follow-through buyers for the second straight day on Monday, extending last week's recovery toward 0.7000 in Monday's Asian trading. Strong Chniese Q3 GDP and activity data for September strengthen the pair's advance, following RBA Assistant Governor Chris Kent's hawkish remarks.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold holds firm below $4,200 on falling US yields

Gold holds gains but remains below the $4,200 mark in the European session on Monday. US Federal Reserve Chair Kevin Warsh’s unwillingness to provide any cues on further policy moves led to a reduction in odds for policy tightening later this month. Moreover, the recent sharp retracement slide in US government bond yields from multi-year highs, acts as a tailwind for the non-yielding bullion.

Cardano risks 15% downside as retail demand, bullish momentum wane

Cardano (ADA) is trading above $0.2200 at press time on Monday, holding steady after a 12% decline the previous week. The altcoin is losing retail interest as the notional value of active ADA futures positions declines. The technical outlook for ADA suggests a downside bias following the bearish breakout below a near-term support trendline last week.

Canada CPI expected to show a pick-up in inflation in September

Canada’s September CPI figures will be the focus of attention on Monday. Indeed, Statistics Canada data will provide markets with an update on price pressures ahead of the BoC’s October 28 gathering, when officials are expected to keep the interest rate steady at 2.25%, broadly in line with analyst consensus.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.