USD/CAD tests highs near 1.2800 on CPI

Canadian CPI rose 1.4% YoY in October.
US housing starts, building permits surprised to the upside.
Spot trading closer to 1.2800 in the wake of data.

Pablo Piovano FXStreet

The greenback picked up extra pace vs. its Canadian counterpart at the end of the week, lifting USD/CAD to fresh tops near 1.2800 the figure.

USD/CAD up on US, CA data

The pair saw its upside renewed after Canadian inflation figures matched expectations for the month of October, failing to give fresh oxygen to CAD at the same time.

In fact, Canadian headline consumer prices tracked by the CPI rose at a monthly 0.1% and 1.4% over the last twelve months. In addition, prices stripping food and energy costs gauged by the BoC rose at an annualized 0.9% and 0.3% on a monthly basis.

Back to the US docket, housing starts expanded 13.7%, or 1.290 million units in October, while building permits rose 5.9%, or 1.297 million units during the same period, both prints bettering initial estimates.

USD/CAD significant levels

As of writing the pair is gaining 0.16% at 1.2777 facing the initial hurdle at 1.2788 (high Nov.17) seconded by 1.2821 (high Nov.7) and finally1.2918 (high Oct.27). On the downside, a breach of 1.2664 (low Nov.19) would aim for 1.2577 (100-day sma) and then 1.2521 (55-day sma).

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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