The Canadian Dollar is reclaiming part of the ground lost to its neighbour in early trade, prompting USD/CAD to slip back towards the mid-1.3100s.
USD/CAD looks to US data
The recent rebound in crude oil prices coupled with market participants unwinding their positions in the greenback have fuelled the pair’s decline to fresh 3-month levels near 1.3020 on Thursday.
USD has intensified its correction lower after president-elect Donald Trump failed to shed more details on his future economic policies at his press conference on Wednesday.
On the other side, and supporting CAD buying, the barrel of West Texas Intermediate managed to bounce off lows in the $50.70 area to yesterday’s tops in the mid-$53.00s despite the significant build in crude inventories as reported by both the API and the EIA.
Later in the NA session, US Retail Sales and the flash reading of the Reuters/Michigan Index will be in the limelight followed by the weekly report on US drilling activity by Baker Hughes.
USD/CAD significant levels
As of writing the pair is retreating 0.03% at 1.3140 and a breakdown of 1.3100 (200-day sma) would aim for 1.3028 (low Jan.12) and finally 1.3002 (low Oct.19). On the flip side, the initial hurdle lines up at 1.3188 (high Jan.12) followed by 1.3275 (100-day sma) and then 1.3311 (38.2% Fibo of the 2016 drop).
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