USD/CAD toying with highs near 1.3140

Pablo Piovano FXStreet

The greenback is now appreciating further vs. its Canadian peer, lifting USD/CAD to the area of daily highs near 1.3140.

USD/CAD now looks to ISM

The bid tone around the buck remains intact today after US Initial Claims climbed to 263K WoW vs. 265K expected, taking the 4-Week Average to 263.00K from 264.00K.

Further data showed Non-farm Productivity contracting 0.6% QoQ in Q2, in line with previous estimates, while Unit Labor Costs rose 4.3% during the same period, beating forecasts.

Adding to CAD weakness, the barrel of West Texas Intermediate has dropped to session lows near $44.20, reverting the initial positive tone.

Next of relevance will be US ISM Manufacturing, Markit’s Manufacturing PMI and the speech by L.Mester (voter, hawkish). On the Canadian side, RBC’s Manufacturing PMI is also due.

USD/CAD significant levels

As of writing the pair is gaining 0.24% at 1.3140 and a break above 1.3202 (high Aug.5) would aim for 1.3253 (high Jul.27) and the 1.3286 (200-day sma). On the other hand, the next support lines up at 1.2998 (55-day sma) ahead of 1.2961 (base of the 4-month rising channel) and finally 1.2828 (low Aug.26).

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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