USD/CAD tests daily highs post-CPI, 1.3400 closer

The Canadian Dollar depreciated further after the release of Canadian inflation figures on Friday, with USD/CAD hovering over the 1.3380/90 band , or session tops.

USD/CAD bid on data

The pair gained some buying interest after Canadian headline consumer prices rose less than expected in February, up at an annualized 2.0% vs. 2.1% initially forecasted, and 0.2% inter-month.

Further data saw prices stripping Food and Energy costs gaining 1.7% over the last twelve months and 0.4% MoM

In the US docket, Durable Goods Orders expanded at a monthly 1.7% vs. a 1.2% gain initially estimated and 0.5% excluding the Transportation sector (vs. 0.6% expected).

Later in the session, the House Republican vote on ‘Trumpcare’, speeches by New York Fed W.Dudley (permanent voter, centrist) and San Francisco Fed J.Williams (2018 voter, centrist) should keep the interest in the buck along with February’s advanced Manufacturing PMI gauged by Markit.

USD/CAD significant levels

As of writing the pair is up 0.14% at 1.3370 and a break above 1.3387 (high Mar.22) would expose 1.3496 (high Mar.14) and finally 1.3536 (2017 high Mar.9). On the downside, the next support lines up at 1.3316 (low Mar.23) followed by 1.3297 (100-day sma) and finally 1.3262 (low Mar.21).