USD/CAD hits fresh daily highs above 1.3350 on a quiet session ahead of key data

US Dollar up modestly amid higher US yields ahead of Fed and key data.
Equity and crude oil prices trim losses during the American session.
USD/CAD holds above 1.3300, risks remain tilted to the downside.

Matías Salord FXStreet

The USD/CAD peaked during Monday’s American session at 1.3357, the highest level since Thursday. It is hovering around 1.3350, slightly away from the critical support area of 1.3300.

The January low around 1.3300 is the key level to the downside: a break lower could open the doors to an extension toward to 1.3220 (November low) and the 200-day Simple Moving Average (SMA) today at 1.3204. On the upside, a consolidation above 1.3360 would set the attention on 1.3400 and the 20-day SMA at 1.3420.

The US Dollar is rising on Monday amid higher US yields and risk aversion. The 10-year Treasury yield stands at 3.54% and the 2-year at 4.26%, the highest since January 12. The Dow Jones is falling by 0.39% and the Nasdaq slides by 1.48%.

Price action remain limited on Monday ahead of busy days. On Tuesday, Canada will report November GDP data, expected at 0%. Analysts at TD Securities look for a flat print on industry-level GDP with a muted performance across both goods and services “with new flash estimates expected to show a modest expansion in December.” They point out the “ultra sensitivity to data releases is on hold” with the Bank of Canada moving towards a pause. “We expect cuts to start in January and expect the data to deteriorate in the coming months.”

In the US will be a busy week, with the FOMC meeting on Wednesday and the Non-farm payrolls report on Friday. The Federal Reserve is expected to raise interest rates by 25 basis points. Fed’s outlook will be critical and could trigger volatility across the FX board.

Technical levels

USD/CAD

Overview
Today last price	1.3342
Today Daily Change	0.0030
Today Daily Change %	0.23
Today daily open	1.3312

Trends
Daily SMA20	1.3433
Daily SMA50	1.3503
Daily SMA100	1.3525
Daily SMA200	1.3208

Levels
Previous Daily High	1.3347
Previous Daily Low	1.33
Previous Weekly High	1.3428
Previous Weekly Low	1.33
Previous Monthly High	1.3705
Previous Monthly Low	1.3385
Daily Fibonacci 38.2%	1.3318
Daily Fibonacci 61.8%	1.3329
Daily Pivot Point S1	1.3293
Daily Pivot Point S2	1.3273
Daily Pivot Point S3	1.3246
Daily Pivot Point R1	1.3339
Daily Pivot Point R2	1.3366
Daily Pivot Point R3	1.3385

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

AUD/USD flirts with 0.7000, lowest since early August amid bullish USD

AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight. Against the backdrop of the hawkish Fed, a two-day rally in oil prices revives inflation fears and continues to push US bond yields to multi-year highs. Adding to this, geopolitical risks lift the US Dollar to a two-month high, overshadowing RBA rate hike bets and weighing on the pair.

USD/JPY pulls back from three-week high after failing near 159.00

USD/JPY edges lower during the Asian session on Friday, stalling its recent strong move to a three-week high of 159.00 as Japanese Yen bears turn cautious amid intervention fears. Meanwhile, the US Dollar retains a strong bullish undertone as the Fed's hawkish outlook and oil-driven inflation fears continue to push US bond yields to multi-year peaks. Furthermore, the BoJ's dovish rate hike last week might cap JPY and support spot prices.

Gold treads water below $4,300

Gold grabs some buying attention and advances marginally at the end of the week, partially retracing the weekly decline, although it is still navigating below the key $4,300 mark per troy ounce. The fresh selling bias on the Greenback and the modest decline in US Treasury yields appear to support the humble advance in the precious metal.

Crypto Today: Bitcoin and Ethereum edge lower, XRP extends recovery as macro headwinds weigh

The broader cryptocurrency market is consolidating on Friday, with Bitcoin paring losses slightly above $84,000. Ethereum declines in tandem with BTC. Ripple (XRP), meanwhile, paints a different picture.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Federal Reserve (Fed) and the Bank of Japan (BoJ) have just done something remarkably similar. Both central banks raised interest rates by 25 basis points (bps) last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.