USD/CAD trims gains, back near 1.3280

The pair moves higher to 1.3300, just to retreat afterwards.
WTI posting decent losses near $52.20/barrel.
Canadian trade balance figures next on tap.

Pablo Piovano FXStreet

After climbing to fresh daily highs near 1.3300 the figure, USD/CAD lost some vigour and receded to the current 1.3280 region.

USD/CAD looks to data, oil

CAD recovered some ground after dropping to fresh lows near 1.3300 the figure vs. its American peer in early trade. However, the softer tone in crude oil prices keep weighing on the comm-bloc, with the barrel of West Texas Intermediate down nearly 1% and testing the $52.00 mark.

In the meantime, spot has resumed the upside today following Friday’s negative performance in response to solid prints from the Canadian labour market during last month.

Looking ahead, Canadian trade balance figures for the month of December are only due in the NA session.

What to look for in CAD

CAD keeps looking to risk-appetite trends and crude oil dynamics as the main drivers of the price action in the near term, as speculations of further tightening by the Bank of Canada appear somewhat diminished. In addition, CAD is also looking at developments from the ongoing US-China trade dispute and the upcoming talks later in the week in Beijing.

USD/CAD significant levels

As of writing the pair is advancing 0.07% at 1.3283 and faces the initial hurdle at 1.3329 (high Feb.8) followed by 1.3334 (55-day SMA) and finally 1.3375 (high Jan.24). On the downside, a breach of 1.3243 (21-day SMA) would expose 1.3223 (50% Fibo of the October-December up move) and then 1.3195 (10-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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