- USD/CAD remains under pressure around the lowest since July-end.
- Prices slumped on Thursday after Canada/US data pleased the bears.
- China’s GDP, IP, and Retail Sales could offer immediate direction.
Following its drop to multi-month low, USD/CAD remains on the back foot while taking rounds to 1.3133 amid early Friday.
The recent absence of fresh catalysts seems to have contributed to the pair’s extension of previous moves. However, sellers seem cautious ahead of China’s key statistics.
Prices nosedived on Thursday after Canada’s upbeat economics confronted with the United States’ (US) disappointing data and trade positive headlines. It should also be noted that the previous rise in Crude prices, Canada’s main export, could have also contributed to the pair’s declines.
Looking at the consensus, China’s third-quarter (Q3) Gross Domestic Product (GDP) is likely weakened to 6.1% from 6.2% on a YoY basis and also expected to soften to 1.5% from 1.6% on a QoQ format. Though, Retail Sales and Industrial Production (IP) seem to have bucked the trend with forecasts favoring 7.8% and 5.0% levels versus 7.5% and 4.4% respective priors.
Given China’s key status for the commodity-linked currencies, likely improvement in data might extend the Loonie pair further towards the south. However, US-China trade noise and a lack of momentum in Crude Oil could restrict the downpour.
Sustained trading below 1.3130 could drag prices to 1.3100/3095 area including mid-July tops. However, buyers are likely staying away unless the one-week-old falling trend line, at 1.3192 breaks.
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 assets. 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.