USD/CAD finds support near 1.33 as attention turns to Canadian inflation data


  • USD/CAD stays under pressure on Wednesday.
  • US Dollar Index returns below the 97 handle.
  • Annual CPI in Canada is expected to rise to 1.9% in March.

After spending the Asian session in a tight range near mid-1.33s, the USD/CAD pair lost its traction during the European trading hours and slumped to a daily low of 1.3306 before going into a consolidation phase. As of writing, the pair was down 0.22% on a daily basis at 1.3322.

Since the start of the week, the loonie struggled to stay resilient against the buck amid a lack of disappointing macroeconomic data releases. Yesterday, Statistics Canada reported a contraction in manufacturing sales and earlier in the week the Bank of Canada's Business Outlook Survey showed that the business sentiment deteriorated in the first quarter of the year.

Meanwhile, the fact that the barrel of West Texas Intermediate is trading in the upper half of its weekly range above the $64 mark is making it difficult for the pair to gain traction and post meaningful gains.

Later in the session, the inflation report from Canada will be looked upon for fresh impetus. Markets expect the annual Consumer Price Index to advance to 1.9% in March from 1.5% in April. Although investors are expecting the BoC to stay in the wait-and-see mode regardless of the CPI reading, a higher-than-expected reading could help the CAD outperform its American counterpart in the near-term.

On the other hand, the only data from the U.S. will be the trade balance. Later in the day, the Fed is scheduled to publish its Beige book.

Technical levels to consider

USD/CAD

Overview
Today last price 1.3322
Today Daily Change -0.0030
Today Daily Change % -0.22
Today daily open 1.3352
 
Trends
Daily SMA20 1.336
Daily SMA50 1.3312
Daily SMA100 1.334
Daily SMA200 1.3208
Levels
Previous Daily High 1.3404
Previous Daily Low 1.3346
Previous Weekly High 1.3398
Previous Weekly Low 1.3284
Previous Monthly High 1.3469
Previous Monthly Low 1.313
Daily Fibonacci 38.2% 1.3368
Daily Fibonacci 61.8% 1.3382
Daily Pivot Point S1 1.3331
Daily Pivot Point S2 1.331
Daily Pivot Point S3 1.3274
Daily Pivot Point R1 1.3388
Daily Pivot Point R2 1.3424
Daily Pivot Point R3 1.3445

 

 

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