- The international trade deficit of the US decreases slightly in April.
- Canadian exports rise to a record high.
- US Dollar Index struggles to pull away from daily lows near mid-93s.
After dropping to a fresh weekly low at 1.2860 during the European session, the USD/CAD pair failed to make a meaningful recovery following the mixed macroeconomic data releases from the United States and Canada. At the moment, the pair is trading at 1.2880, losing 0.7% on the day.
Earlier today, the broad-based selling pressure witnessed on the greenback following comments from ECB officials that heightened the expectations of a QE exit, dragged the US Dollar Index to its lowest level since May 23 at 93.52 and weighed on the USD/CAD pair.
At the beginning of the NA session, the data from the United States showed that the trade deficit decreased to $46.2 billion in April from $47.2 billion in March. A separate report revealed that the unit labor costs in Q1 increased by 2.9% to surpass the market expectation of 2.8%. On the other hand, according to the report released by Statistics Canada, Canada’s exports rose to a record high of $48.6 billion in April.
These data releases failed to have a significant impact on the price action and the USD/CAD pair stays its recent lows with the DXY struggling to recover. Later in the session, the Richard Ivey School of Business is going to releases its monthly PMI report from Canada.
Technical levels to consider
The pair could encounter the first technical support at 1.2820 (50-DMA) ahead of 1.2730 (200-DMA/May 11 low) and 1.2690 (Apr. 9 low). On the upside, resistances align at 1.2900 (psychological level/20-DMA), 1.2955 (Jun. 6 high) and 1.3000 (psychological level).
Share
