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).
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.
