USD/CAD remains in red near mid-1.21s post US-data

The USD/CAD pair dipped to a fresh session low at 1.2123 after the disappointing retail sales data from the U.S. but was able to retrace its losses. As of writing, the pair was trading at 1.2152, losing 0.1% on the day. 

According to the data released by the US Census Bureau on Friday, advance estimates of U.S. retail and food services for August were $474.8 billion, contracting 0.2% on a monthly basis after rising 0.3% in July. Weighed by the disappointing figures, the US Dollar Index plummeted to its lowest level since Monday at 91.60. 

Other data showed that the manufacturing activity remained healthy in the New York area with the Empire State Manufacturing Survey's headline general business conditions index coming in 24.4 and surpassing the market estimate of 19. Buoyed by this upbeat data, the US Dollar Index is now at 91.70, still losing 0.37% on the day.

In the meantime, after rising to its highest level since late May at $50.50, the barrel of West Texas Intermediate struggled to extend its gains on Friday and is now trading little changed at $49.80, not allowing the commodity-sensitive loonie to gather strength against its peers.

Technical outlook

The RSI indicator on the daily graph continues to move sideways, suggesting that the pair is having a difficult time setting its next short-term direction. 1.2240 (Sep. 14 high) could be seen as the first technical hurdle ahead of 1.2300 (psychological level) and 1.2330 (20-DMA). On the flip side, supports align at 1.2120 (daily low), 1.2080 (Apr. 27, 2015, low) and 1.2000 (psychological level).

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.