USD/CAD sinks to lows near 1.3230 post-US data

Pablo Piovano FXStreet

The greenback remains on the back footing vs. its Canadian peer at the beginning of the week, now dragging USD/CAD to fresh lows near 1.3230.

USD/CAD offered on weak data

Spot met further downside pressure after US durable goods orders surprised markets to the downside today. In fact, orders for long-lasting goods contracted at a monthly 1.1% in May and expanded 0.1% inter-month when excluding the Transportation sector.

Further news from the US docket saw the Chicago Fed National Activity index dropping to -0.26 in May.

CAD stays strong today following the better tone in crude oil prices, where the barrel of West Texas Intermediate is extending its decent recovery above the key $43.00 mark, or 3-day peaks. Recall that prices for the WTI bottomed out just above the $42.00 mark last week, recording fresh 7-month lows.

In the meantime, spot is fading part of Friday’s advance and trading close to fresh 4-month lows in the 1.3165/60 band seen earlier in the month, always vigilant on crude oil dynamics and the BoC, particularly after recent comments by C.Wilkins and Governor S.Poloz.

USD/CAD significant levels

As of writing the pair is retreating 0.31% at 1.3226 and a break below 1.3189 (low Jun.19) would aim for 1.3163 (low Jun.14) and finally 1.3007 (low Feb.16). On the other hand, the next up barrier is located at 1.3312 (23.6% Fibo of the May-June drop) seconded by 1.3341 (200-day sma) and then 1.3349 (high Jun.21).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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