“¢ Canada international trade deficit unexpectedly rises to C$4.25 billion in January.
“¢ US trade deficit falls to -$51.1 billion for January and provides an additional boost.
“¢ Weaker oil prices weighs on Loonie and remained supportive of the up-move.
The USD/CAD pair built on its goodish intraday up-move from the 1.3380-75 region and spiked to fresh session tops during the early North-American session.
Having defended 38.2% Fibo. level of the 1.3258-1.3445 recent up-move on Tuesday, the pair managed to regain positive traction on Wednesday and for now, seems to have snapped two consecutive days of losing streak.
The commodity-linked currency – Loonie remained depressed in the wake of a weaker tone surrounding crude oil prices and lost some additional ground following the release of Canadian trade balance figures.
In fact, the Canadian international trade deficit unexpectedly jumped to C$4.2 billion in January and the previous month’s reading was also revised higher to C$4.8 billion as against $4.6 billion initially reported.
Meanwhile, the US trade deficit narrowed more than expected to $51.1 billion for January as compared to $59.9 billion deficit in the previous month and provided an additional boost to the pair’s positive momentum.
This coupled with possibilities of some short-term trading stops being triggered on a sustained move beyond the 1.3405-10 region further collaborated towards accelerating the up-move in the last hour or so.
It would now be interesting to see if bulls are able to capitalize on the momentum or once again fail near the 1.3440-45 supply zone, or two-week tops set at the beginning of this week.
Technical levels to watch
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